They might have lost money but compared with how much Microsoft is losing on the X Box..
I still dont get the whole online thing either.
X Box has the best online setup, but you need a broadband connection. Many people don't have broadband. Sony has both regular modem and broadband connections but fewer online games. And the Gamecube has both adapters as well (broadband and modem) but they might as well not even bothered releasing them.