First thats talk about some facts. XBox is massive money losser for the Redmon beast in fact Microsoft has never made money from system. It in the same money league as Office but unlike Office it makes a lost. That is a seriours amount of money and even Microsoft can not allow this to go on.
Now the Playstation saved Sony. Long story short but Sony where in massive deats, so much so Sony nearly had pull the plug on Playstation (1) at 11 hour as there where having problems with cash flow for the group. Well thats walter under bridge now. Most of money Sony made from Playstation (1) went on paying back some of lones they had. When came to Playstation (2) Sony was still a bit weak, they had to sell of some parts of business to pay to launch Playstation (2). As well all know Playstation (2) was even bigger success then Playstation (1). Today Sony is better looking then ever.
It well know fact that both Sony and Microsoft sell hardware at a loss. This is nothing new in fact all moble phone business sell there phones at loss. Also daily news papers do this as well the price you pay buy daily paper is no where near it ture price there make there money from the add's in there.