Nintendo was, I believe, making money on every Gamecube sold from day one. If they weren't, they sure as heck weren't losing $100 per console. I figure they'll probably be selling the Revolution for under $250 since it really doesn't look like it will have anything that would push the cost up like a hard drive, a high def capable optical drive, etc.
Honestly, I could see people buying PS3s for the Blu-Ray DVD player capability since they will probably be a couple hundred bucks cheaper than stand alone Blu-Ray players, and this will probably help Blu-Ray beat HD-DVD unless Microsoft sticks that in the 360..