PS5 is being sold at a loss (officially confirmed)

[Bofferbrauer2]

Leynos said:

Nintendo is usually the only one making a profit out of the gate. Even when they made hardware of equal or better power than their rivals.

Nintendo is the only one of the three who can't cross-finance selling at a loss with income from other divisions of the company, so selling a console at a loss is a huge financial risk for them. This is why the Wii U and 3DS, which both were sold at a loss (initially only the Wii U, but the early and strong price cut of the 3DS put it in that region, too), were so damaging for Nintendo's finances, and why they acknowledge that the Switch was really boom or bust for them due to this.

That being said, Nintendo could start lowering the price of the Switch by now. It's almost 4 entire years now without a pricecut...