Yeah, the figures are just for the entertainment divisions.
Of course, in the case of MS, they're (still) losing money on the xbox/xbox360, so my personal ebay account makes more profit than they do. Still, you're right: backed by Microsoft's rather large bank account, they can afford to do so in order to gain market share, and then ... in theory ... start ramping up profit later on in the console lifecycle.
Nintendo, to some extent, don't care so much about market share: they're making larger profits off their console than anybody else, and the fact that Microsoft is shipping more units doesn't really matter when the more N ship, the more they make, but the more MS ship, the more they lose... Also, Nintendo really are aiming at a somewhat different market to MS/Sony - it's not just marketing bullshit - so they're somewhat insulated from any alleged console war.
Sony is the company I'm interested to see whether they'll manage ... well, not to survive, I don't see them disappearing ... but they seem rather vulnerable at the moment. They sold something in the region of 6x more consoles than anybody else last time around (PS2), and were able to start pulling in profit towards the end of its lifecycle, if not so much as Nintendo. But this time around, MS has got their console out first, and it's cheaper; that's kind of the opposite position to last time when the xbox was the expensive late arrival...
(And yes, to belatedly answer the topic title, I did find it immensely amusing that after dismissing the Nintendo controller as gimmicky, Sony suddenly pull a motion sensitive controlled out of their arse for E3. Hmmm.)