I wonder how this model compares to things like videogame consoles where the device is (afaik) sold below cost but then made up in licensing fees and royalties

I wonder how this model compares to things like videogame consoles where the device is (afaik) sold below cost but then made up in licensing fees and royalties on sales? I think it's a good comparison and would give insight into how a similar scenario has played out in adjacent industries