Sony taking a heavy loss on the PS3?

Sony taking a heavy loss on the PS3?

Looks like Sony may be taking an unusually large loss on the PS3 hardware:

http://www.gamesindustry.biz/content_page.php?aid=9838

There are some problems with this article, though. It seems to assume that Sony gets $399 for each console they sell. Obviously, they don't. Distributors and retailers take a big bite out of that, so Sony's loss would be much larger if the other numbers are correct.