It is not uncommon to hear that consoles are sold at a loss, as the parties involved make their money by selling games. Interestingly enough that was actually confirmed by Microsoft.

Microsoft is selling its Xbox consoles at a loss. That is to say, they do not earn money for each console sold, but instead, they make their bet on making each unit sold profitably by selling video games and services such as Game Pass. As stated this, is not new info as well all knew that. But they have actually confirmed that confirmation.

This information came from Xbox's own vice president of business development,  Lori Wright , who disclosed the information to  Wes Earnhardt , the attorney for Epic Games:

-What is the margin that Microsoft gains with the sale of Xbox consoles?

-"We do not do it. We sell the consoles at a loss, ” Wright revealed.

After asking if Microsoft had obtained some profits once the sale of an Xbox console, the vice president was blunt: "No" .

Each Xbox console sold, is sold at loss