They'd still have spent a tonne of money on developing and marketing the console though so unless they could sell enough consoles to recoup those costs they'd lose money.
That is true, but would be less loss or risk than a situation like PS3 where they subsided a lot of the cost expecting to recoupe on SW.
So your expectation is that if such model of 600 HW and 40 SW would end up selling less HW and thus console maker would lose money?
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
Azzanation: "PS5 wouldn't sold out at launch without scalpers."