Sony may be counting on the PS3 driving adoption of Blu-ray, and recovering their money that way. Lose some on one product, make more on another. In this case, not only off games, but off BD movie sales.
I've seen articles claiming something like 75%-80% of PS3 owners watch or plan to watch BD movies. I rather doubt it, for the short run anyway. But if that even is half true over the next six months, it's a massive boost for Sony. Of course, I plan to win the lottery, we'll see how that works out. Gotta buy a ticket, I hear.
You know Sony, right? "Be thankful we're cramming it down your throat and not up your..." But I digress. They can take losses for a while, but not forever. The fact they removed the head of their games division says a lot about the PS3 perhaps not going according to plan.