Xbox, the hardware product, makes Microsoft almost no money. Sony actually loses money every time someone buys a PS5 (same thing happened with the PS3) and Nint

Xbox, the hardware product, makes Microsoft almost no money. Sony actually loses money every time someone buys a PS5 (same thing happened with the PS3) and Nintendo Switch margins are so thin that the first revision made no money after shipping and handling. The reality is, nobody has hardware margins like Apple. They sell an iPhone at full price, they pocket 40% of the MSRP. Part of those proceeds go towards marketing new iPhones, whereas Microsoft and Google don't really get the yields to justify that. Just look at the 2022 earnings call and you'll see how wide the disparity is.