Nintendo by contrast makes a profit on every console it sells from day 1. IIRC the Wii is the most popular of the current generation, so I don't think you can dismiss them like that.
Not only that, they've made 4 of the top 10 selling console games this year. By contrast Microsoft Studios has 1 game on the top 10 list and the best selling game by Sony is on 26th place. The numbers are basically the same for 2011. So not only are they make healthy profits by selling more consoles than anybody else, they're also running an incredibly successful (and I assume profitable) games studio selling games for those consoles. That's not too shabby for a niche player.
The fact that Nintendo profits from games actually goes along with the great grandparent's point though. IIRC a large part of the death of Sega was a "sell consoles cheap, subsidising them with the profits we make on games" model.
Not only that, they've made 4 of the top 10 selling console games this year. By contrast Microsoft Studios has 1 game on the top 10 list and the best selling game by Sony is on 26th place. The numbers are basically the same for 2011. So not only are they make healthy profits by selling more consoles than anybody else, they're also running an incredibly successful (and I assume profitable) games studio selling games for those consoles. That's not too shabby for a niche player.