i wasnt talking about microsoft, just the xbox division. I keep reading every week how nintendo is crushing it and they still make less money than the xbox division?
Im talking about the 5B in revenue xbox made last quarter, which seems more than nintendo.
You keep reading it because console warriors on the internet keep forgetting (or purposely ignoring) that hardware sales and software sales are two completely different, dare I say opposite factors. Consoles are sold at a loss in most cases, they're just a vessel for software, if there's a profit made it's a very tiny one, software is where all the profit comes from, for example - a huge chunk of Playstation revenue comes from PS+ alone, that's something neither hardware nor software sales can tell us, only Sony's own financial reports, then there's 1st party software sales, then 3rd party software sales, which includes full games, DLC's, season passes, microtransactions, lootboxes and what's not, everything they allow to be published on their console brings them basically free money, lot's of it, that's where all those billions are made. Same deal with MS of course.
Nintendo on the other hand, since they decided to leave the typical home console market and went their own path, have cut themselves out from that huge 3rd party revenue source, so despite their consoles selling a ton, they don't being much money by themselves, and when you look at the software sales, sure, at the first glance their 1st party titles are crushing everyone else, but that's just a few titles a year, whereas if you look at both 1st and 3rd party sales combined, turns out Nintendo is nowhere near in terms of software sales of what's being sold on PS/XB consoles, plus all the previously mentioned online services, DLCs, MTX etc. which as far as I am aware aren't nowhere near as widespread/popular popular on Switch. That's the main, basically sole reason why we never see price drops of Nintendo's hardware and software, that's their only source of income.