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@OP:
Profit. They do it even with low selling consoles, as they always keep HW dev & production costs under control so that at worst including SW, they get a platform overall lifetime profit (their only true failure about this was the Virtual Boy). Even on them their core 1st party titles sell a lot and they get all the profit from them, besides receiving royalties from 3rd parties instead of having to pay them if they themselves went 3rd party too.



Stwike him, Centuwion. Stwike him vewy wuffly! (Pontius Pilate, "Life of Brian")
A fart without stink is like a sky without stars.
TGS, Third Grade Shooter: brand new genre invented by Kevin Butler exclusively for Natal WiiToo Kinect. PEW! PEW-PEW-PEW!