I remember seeing the COGS for Xbox One and it was the same as retail prices. There was no profit from COGS and then you have shipping and associated costs to get the consoles out. So there is an inherent loss. it’s likely too that advertising comes under this cost per unit too.
Xbox games take 10 to 15 USD per title sold, so there is a big push for games to sell. Xbox 360 had the highest at the time games sold at console sale it was like 2.5 or 3.5 games per console sold and I think that is likely still a record.
Consoles take time to make a profit, but subscription models with multiplayer really help. Honestly I think this is how it should remain, at least with lowering the cost of entry to home consoles vs desktop computers.
There's also laws like that in the US, and in most places. However, it seems this is being overlooked because it's not really for the purpose of creating a monopoly, as everyone is doing this, as it's actually just to get consumers' feet in the door to the ecosystem/platform.
Sony no longer sell the PS5 at a loss, (sold at a loss for 9months) [2]
Microsoft still selling at a loss is anti-competitive, since they are able to sell their console cheaper than the competition, they are a billion dollar company btw
Another example is the Steam Deck, sold at a loss, as a result, competition can no longer compete, read about "Deck vs GPD"
Xbox games take 10 to 15 USD per title sold, so there is a big push for games to sell. Xbox 360 had the highest at the time games sold at console sale it was like 2.5 or 3.5 games per console sold and I think that is likely still a record.
Consoles take time to make a profit, but subscription models with multiplayer really help. Honestly I think this is how it should remain, at least with lowering the cost of entry to home consoles vs desktop computers.