Re: Both Sony and MSFT lose money on the hardware
All consoles are initially sold for a loss, in most cases its just a matter of getting the hardware into your home so they can provide additional services that you will inevitably have to pay for. (PSN+, XBL)
Once costs for an aging processor etc drop, RRP is kept high by them putting the exact same components in 'slim' casing, adding a slightly larger HDD then selling it for the same price it retailed at 5 years ago.