Why can’t you imagine it? The console makers have been selling at a loss for 3 maybe 4/5 decades.

Edit: looks like it took 10 million PS5s to break even. The article is 5 years old I wonder if it’s true in 2026.[2]

> The existing industrial arrangement at the time was that of a bundled console-plus-cartridge business model, where the console manufacturer (say, Atari with its VCS/2600) sold the console at a loss and cross-subsidized it with the money made on cartridges sold with a huge profit margin.[1]

[1] https://thereader.mitpress.mit.edu/how-nintendo-bled-atari-g...

[2] It took Sony years to stop losing money on PS3 sales, but the company stopped selling the PS4 at a loss around six months after its debut in 2013. The PS5 has taken ever so slightly longer, but it’s clearly not repeating the costly exercise of the PS3 despite early reports suggesting Sony was struggling with PS5 pricing due to expensive parts.

[2] https://www.theverge.com/2021/8/4/22609150/sony-playstation-...