I’m well aware of how consoles typically make money. So is Sony. The thing is, their games are getting more expensive to make and take longer too. That means there are fewer of them, which means there are fewer reasons to buy a PlayStation, which means there are fewer games sold to profit from. They historically haven’t published on other platforms, because their bread is buttered when you feel like you need a PlayStation and buy your games there, even the ones available elsewhere. There’s always demand for an easy-to-use box you can buy for less than a PC, but in the past decade, consoles have become more complex, PCs have become easier (and/or the know-how for using them became more commonplace), and the gap in price between the two has shrunk, especially when you consider long-term costs like subscriptions for online play or having to buy remasters of games that you could just have on PC and run at better resolutions and frame rates, things that consumers have become to savvy to.
Oh yeah, and of course Microsoft is doing even worse, sounding like their next console will just be a dressed-up Windows PC.