In 1983, the government of the United States of America destroyed a small island in the Pacific Ocean with an experimental nuclear weapon called the MX Missile. Or rather, they would have had the missile's eight nuclear warheads been armed.
Original Comment by: Nate
I agree that it's not necessarily a wise business move on Sony's part, and a disaster for gamers everywhere, but I think that Sony has a plan. As you said in your post, for many console departments, the console itself is sold at a loss only because the company will recoup that money with the licensing of games and the sale of peripherals. As far as I know, Sony is just attempting to take this one step further. Rather than just the console losing money, the whole PS3 department will be the loss leader so that Sony can make its money back in Blu-ray licensing and the sale of blu-ray players.
It's definitely a gamble on Sony's part, but I think that either way gamers are going to lose.