If you look at the history of consoles, many are sold at very thin margins, or even at a loss, not even including R&D, distribution, etc. just purely from a component cost standpoint. They recoup these costs using revenue from the game sales and the online play features. It’s not a squeezing money kind of thing. For example, the next gen of consoles is probably going to be in the $500 range, and includes pcie4 speed 1tb SSDs. I bought one of these for my new machine and it was about $200 alone. Add in the processor, ram, motherboard, case, optical drive, etc. and these systems are not making tons of profit.
