Bold move, but yet their consoles have sold well over the generations. I don't think it's a bad move, they know their first party launch games is what will make their consoles sell.
For Example: Whats the use of having Blu-ray in your console and everyone buys it for the Blu-ray aspect, but you are making a loss on each console sold? The mayority of the money Sony receives are from companies who make games on their consoles. As Sony, you don't want people buying your console but then just use it for Blu ray, you want them to buy games which will keep the developers happy and develope on the console and more money for you(as Sony).