Very few consoles were sold at a loss. Some certainly were, like the fat PS3. But that was the exception, not the rule.

More relevantly, none of the current generation (ps5, xbox series, switch 2) are sold at a loss. They don't have large margins, but they are sold above cost.

The Taiwanese computer manufacturers won't be phased by thin margins; that's their modus operandi.

Microsoft testified under oath in court that they lost money on every Xbox sold prior to the current generation.

Sega lost money on every console prior to exiting the market.

Nintendo sold various consoles at a loss (Wii U).

The PlayStation 1 through 4 sold either at a loss or break even.