As I have said in other threads the PS3 is a loss leader to getting blue ray into people’s homes. There is so much money on the line for:
1) Licensing fees for the system that will be in everyone’s homes for the next 15 years.
2) The ability to preemptively enforce DRM to prevent pirating.
3) The ability to force one license per-machine as the de facto law of the land.
Sony is a content provider and a hardware provider. It’s worth the loss of cash on the hardware side of the house, to boost profits long term from the research and content provider sides of the house.