All console hardware initially lose money. However, dont feel bad because they make it up in software and accessories, "give them the razor, sell them the blade" model. Just look at the markups: $120 for 250gb hard drive, $50 for hdmi cables, etc etc...
But through time, with better manufacturing processes ie smaller chipsets, improve yield, cutting unnecessory "features" out, etc... they bring down the cost. to tell you the truth, i dont thing console makers ever make money on the initial console itself except probably at the very end of its life.