How much Sony loses on each PS3..

You have to think in terms of yields. On a complex new chip like this, there is bound to be process problems that crop up, increasing scrap and decreasing the number of good parts you are getting from a wafer. The larger the IC, the less you get on a wafer as well, so the worse the yields, the more money you end up throwing away when one doesn’t work. The most microscopic scratch on the surface can kill an IC, so it is very easy for the costs to escalate, and they are probably implementing some kind of screening to recover anything they can, which increases labor costs. All of this factors in to how much they make or lose on every console.