PS5 is skinny, which means it's parts have to be skinny to fit into it, and we all know smaller technology is cheaper than the same specs on larger technology. Series X is huge, with tons of space on the inside, so the parts don't have to be as small.
I have no idea who is making or losing what money on their device. A lot of that is impacted by higher ups negotiating prices with manufacturers behind the scenes. Hypothetically one of them could have, on average, gotten better "deals" on parts than the other. As to which one did, who knows?
The bottom line is it doesn't matter. GamePass will lead to butt tons of cash for MS and Exclusive games will lead to butt tons for Sony, while Nintendo makes more profit than both of them. They all go home rich and happy, and capitalism thrives as it should with investors getting dividends.
I feel like you meant to say that smaller parts are more expensive than larger parts here, not cheaper? I know that most mini-ITX or mini-ITX friendly parts on PC tend to be more expensive than Micro-ATX or ATX parts. You often pay more for mini-ITX friendly motherboards, RAM, power supplies, GPU's (either single slot GPU's or shortened GPU's), and CPU coolers than you do for Micro-ATX or ATX versions in my experience.
Though I'm not sure how much PS5's thinness could hurt them here. Maybe will need a more expensive CPU cooler and heatsink due to the thin case size combined with the very high GPU clockrate they are using. Needing a thinner power supply could also hurt them possibly. Don't think the thinness on PS5 could hurt them on any other parts besides those 2. They can use as big of a motherboard as they want since the case is huge in height and depth, RAM is integrated into the motherboard on consoles so there are no separate RAM DIMM's with heat spreaders like on PC.Last edited by shikamaru317 - on 13 September 2020