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Selling consoles at a loss means getting more tech for your dollar.  All the money will be made back through game sales. and subscriptions, and through the console itself when manufacturing costs goes down.  Phones don't have room for fans, or any type of on-board cooling.  Whatever space you can use for gaming in a phone, you'd get better hardware on a console, that's much larger than a phone, and has room for fans/heat sinks, etc.

it's so much easier to just turn on your console, and have things work.  There's ease of use and exclusive games, and games released on console don't have to take wide varieties of PC specs into consideration.