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binary solo said:

And how much of that huge amount of money is hardware profit? Bugger all. Console hardware is a mug's game. By all accounts over the lifetime of Xbox MS has failed to turn a profit despite cumulatively selling in excess of 100 million units. And there are hundreds of millions more devices aside from consoles and Smart TVs that play those streaming services so consoles are not so important to Netflix and the like as you suggest.

The real money in gaming is in the games, not in the hardware.

And the PS4 was already profitable a quarter after release. There is money to be made on hardware. And consoles are very important to netflix as a big chunk of their users connect via consoles.