UPDATE 2-TECHSHOW-Sony's Hirai eyes PS3 profit as costs decline

Great games, which draw consumers to buy the console, matched with declining component prices, will hopefully lead to profitability for the PS3 and the company's gaming division overall, Hirai said.

"Component costs are coming down, and the number of components ... we are seeing a reduction," he said. "The 40 gigabyte PlayStation 3 obviously has fewer components (than more powerful models), and uses less power, which means that components required to dissipate heat, for example, can be smaller, so there is some cost reduction there."

"So costs are coming down significantly," he added, noting that the decline is in line with what the company had expected. (For more from the Consumer Electronics Show, please visit the MediaFile blog: blogs.reuters.com/mediafile/) (Reporting by Franklin Paul; Editing by Quentin Bryar, Richard Chang)