Sony has already lost over probably $300 million in the cost of the blue diodes
Movie income is not enough to absorb the PS3 costs for too long.
The diode drove up price. Because of price the PS3 is a distant third in the console wars. Despite solid PS2 performance, the games division lost almost two billion dollars last year. That drove all of Sony into the red last quarter, dropping yearly profits a whopping 1.3 billion from last year, almost 70%.
The outlook looks good to me though, as they've updated the PS3 online to work out some bad initial bugs, and a price drop this year might boost sales. They need some killer games though. The chicken/egg problem and hard development is slowing developer uptake.
I may just get one next year, who knows. Then I'll end up in the Blu-Ray camp.