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If I'm not mistaken, none of the consoles this gen sell for a loss. I think the Switch just barely breaks even.
No its because they price them cheap in poorer countries.
https://www.polygon.com/2015/2/9/8006693/the-truth-behind-those-mysteriously-cheap-gray-market-game-codes
This is one of the many reasons. Apart, from that sales is also a huge reason for games being cheap compared to consoles.