Technically they make all/most of their money on the games people buy - the PS5 is just barely profitable[0] (but only at its massive scale of >20M units), and the xbox series X supposedly still sells at a $100-200 loss[1].
Why are you making that comparison? Nintendo is known for their strategy of using cheap/old parts in innovative ways to both increase hardware profit margins, and create lock-in (see: https://en.wikipedia.org/wiki/Gunpei_Yokoi#Lateral_Thinking_...). They make quite a bit of money on each Switch sold, as they have on every console previous.
judge2020|2 years ago
0: https://www.theverge.com/2021/8/4/22609150/sony-playstation-...
1: https://www.thegamer.com/xbox-series-x-s-sole-at-loss-200-do...
derefr|2 years ago
CyberRabbi|2 years ago