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> Console business has always operated this way.

Actually, I think the practice of selling the console at a loss only started with roughly the PS2 or PS3 generation. (The PS3 and later were very definitely sold for a loss, but I've been unable to track down verifiable statements for the PS1 or PS2.)

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Sega Dreamcast sold at a loss. I'm sure there were others in the past as well.

Pretty sure the SNES and megadrive were sold at a loss as well.

Nintendo does not sell hardware at a loss. That's one of their quirks.

But they do sell hardware at very tiny margins and have to rely on software sales to keep the business going.

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