Consoles have mainly operated following the razor and blades economic model: sell the console at or near cost and then sell the games at much higher prices than PC games.
Overall they were always an inferior financial choice vs the PC because that extra costs for console games didn't take that many games to exceed the savings in upfront costs of buying a console over a PC - turns out that plenty of games which aren't ultra-realistic extravaganzas with budgets in the 100s of millions of dollars are also fun because gameplay is more important than graphics, and there are tons of those for the PC and they're way cheaper than the latest AAA fancy-graphics with meuh gameplay games that are console exclusives.
Worse, this was the before: nowadays a console itself isn't really all that much cheaper than a PC, so even the upfront saving isn't there anymore.
Unsurprisingly consoles have been losing ground to PCs.