The Blu-Ray player in the PS3 is the main reason it costs so damn much to manufacture. The drive alone costs $350.
So, if Sony sells 2 million units by year end worldwide, with an average loss of $250-300 per unit, you are talking about them losing $500-600 million.
Sony is going to be fucked next year when MS drops the price of 360 by $100 after going to the new 65nm manufacturing process (Feb-March 07). Sony simply can't drop the price of PS3 for a long time. They put too many expensive parts into it.