Console makers tend to lose money on console sales [0], but they then are able to make it up in selling things like (but not limited to): Online Access (Nintendo Online, PSPlus, Xbox gold), Games, and possibly ads, should they choose to display any,
[0]: https://www.investopedia.com/articles/investing/080515/econo...
Console manufacturers make money through licensing fees paid by game developers. The consoles themselves are usually sold at or below cost.
I guess I'm not saying how this fits