I think you're still missing the concept of selling at a loss. Lets take the PS3 as an example.
Sony has sold 3.7 million units (according to the main article). Sticking with the assumption that they were all $499 units, that would be a total of $1.85 billion in gross revenues. However, according to the article from the poster above, Sony sold the $499 console at a loss of $306.85. That means it cost Sony $805.85 to make the $499 PS3, and that they actually lose $306.85 on every sale. So while they brought in about $1.85 in gross revenues, they actually lost about $1.14 billion on the sales. Of course, some were actually $599 versions (with lower losses) and I'd bet Sony has reduced the manufacturing costs at least a little since launch, so the $1.14 billion loss a worst case scenerio. Microsoft is probably still in a hole as well, although they're supposedly making money on new consoles now. Nintendo has been making a profit on console sales since launch though.
Also, counting the full price of games as net revenue is similarly misleading. Sony, MS, and Nintendo don't see the full price as profit. Instead, they get a fee per game sold (I imagine it's a set ammount, but I don't know the exact numbers). The designers, publishers, distributors, retailers take the rest. Games aren't free to make, after all.
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I think you're still missing the concept of selling at a loss. Lets take the PS3 as an example.
Sony has sold 3.7 million units (according to the main article). Sticking with the assumption that they were all $499 units, that would be a total of $1.85 billion in gross revenues. However, according to the article from the poster above, Sony sold the $499 console at a loss of $306.85. That means it cost Sony $805.85 to make the $499 PS3, and that they actually lose $306.85 on every sale. So while they brought in about $1.85 in gross revenues, they actually lost about $1.14 billion on the sales. Of course, some were actually $599 versions (with lower losses) and I'd bet Sony has reduced the manufacturing costs at least a little since launch, so the $1.14 billion loss a worst case scenerio. Microsoft is probably still in a hole as well, although they're supposedly making money on new consoles now. Nintendo has been making a profit on console sales since launch though.
Also, counting the full price of games as net revenue is similarly misleading. Sony, MS, and Nintendo don't see the full price as profit. Instead, they get a fee per game sold (I imagine it's a set ammount, but I don't know the exact numbers). The designers, publishers, distributors, retailers take the rest. Games aren't free to make, after all.