When the PS3 was first launched, Sony was losing about $200 for every console sold. As time has passed, Sony has worked out cheaper ways to manufacturer the console, but they are still losing money on every sale.
Now, with the release of the PS3 Slim, the amount lost has dipped down to an estimated $31.27 with each console sold. Not a huge amount, and definitely an improvement over the $200 they started at. Still a loss, sure, but assuming they sell a few games and accessories, it’s becoming a much more realistic loss leader.