That is true - Nintendo knows how to make cheap products and sell it for a high price. Their games cost very little to make as they recycle concepts with the games being very samey across the generations.
Maybe so, however you need to look at it as a business standpoint. Whats more important, money coming in or hardware going out.
Would you call MS a winner if next gen they gave out there Scarlett console for free, breaking every sale record in history while losing billions? Would you say they won? I certainly wouldn't.