sure, but most other console makers actually sell at a loss and rely on selling and re-selling software to make profit. And users who buy consoles don't want to mess around with emulators anyway.

Valve didn't sell hardware for half its lifetime, and the hardware it sold were on small margins. Steam Deck is a success selling a few million, the vita was a bomb selling 10m (very conservative estimate. you'll see 15m when googling). Economies of scale