While this is true - with the caveat that the goal for console manufacturers _is_ to make a profit as they optimize and ramp up production - people generally leave out the part where they make a compelling argument based on this situation.

For instance, the primary complaint Epic has is not that Apple gives preferential treatment and deals to some companies - it is that they WOULDN'T give one to Epic. https://www.imore.com/epic-games-would-have-accepted-special...

> Gaming console hardware is heavily subsidized by those cuts.

I was about to reply with skepticism, but after looking online I found the following and have to reconsider my doubts. This Apple vs Epic trial truly is a wondrous thing

https://www.theverge.com/2021/5/6/22422691/microsoft-xbox-co...

The problem with that though is that legally, there is no difference between whether hardware is sold at profit or not as to whether you can have an App Distribution monopoly.