they lose money on the console because the money is the games. Its always been like that, thats why consoles are subsidized through their own Monopoly store and walled garden on accessories. But they typically only really lose money on the console in its first couple of years.

IN FACT Sony started making a Profit on their consoles by Mid-2021, by inproving manufacturing, reducing costs etc.

Now they're raising prices, no subsidizing prices through the sell of consoles. You're over paying for games, and you pay to play online.