I actually used to work with the team who made Xbox 360 controllers. Things have probably changed in the decade since, but back then I was told that MS was only

I actually used to work with the team who made Xbox 360 controllers. Things have probably changed in the decade since, but back then I was told that MS was only making $3 or $4 profit per controller sold. Money was made in volume, not on individual units. To explain this, imagine a consumer electronics device that costs $5 to make. The manufacturer then sells it to a distributor for $10. The distributor sells it to the store for $20. The store sells it to you for $40. The original company making the device only nets the $5, but that doesn't include other costs. For example any fancy in-stores displays stands are put there by the manufacturer and come out for their initial $5 cut.