No doubt about that, since (nearly) all their products are digital their expenses must be much lower. They also have very few employees for a company of their size.
And Hardware revenue bloat the number on revenue and tank the number on profit.
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."