(1) They are sold at or below cost since Nintendo/Sony/Microsoft make money on the games
(2) The order huge amounts of the components in bulk from their suppliers so get a good price for those as opposed to EVGA, Asus, GIGA Byte and a bunch of other smaller companies putting in smaller orders
(3) Everything is soldered on to the boards so no need to include things like the casing around the video card or all the connectors.
(4) They are manufactured on highly specific custom assembly lines that are more efficient
(5) The consoles being all custom and the developers knowing exactly the hardware they are developing for means the games are better customized so you can get the same performance from a PS5 as you could from a PC with higher tier gpu and cpus.
They mass produce them using bespoke components on an assembly line. Their build is chosen specifically to achieve low costs at a certain level of performance.
Not only that, often they are loss leaders — the console vendor sells the console at a loss or at cost, intending to recoup the money in sales of games and subscriptions.
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