They\'re probably going to think long term.. . I\'m sure Sony is smart enough to do that.
What\'s the margin on DVDs these days? 6-12 dollars a the producer side of the market? I\'m sure that Sony knows they\'ll make much more money if they end up dominating the HD movie market in 5 years than they will ever make purely on profit from the PS3. As such, it makes sense for them to take the hit now, take the risk, dominate the future market for movies.