Game consoles and smartphones/tablets are completely separate markets with different functions
Game consoles are designed for just that: Games, with occasional streaming services. That's it. You're not doing your taxes on a game console, you're not creating spreadsheets on a game console, you're not using social media apps on a game console. Game consoles are also a highly competitive market, versus smartphone operating systems that are a duopoly between Apple's iOS and Google's Android.
Let me offer a bit of what comes to mind. Take it as you will.
1.a: People complain that an iPad should be exactly as a Mac and have macOS. That “it’s apple fault because it has basically the same capable hardware”. Suddenly, “it wasn’t designed for that in mind” doesn’t fly here. Which is totally understandable.
1.b: But why give the others a pass? What’s stopping Xbox and Sony from using their
100% equivalent hardware to any other customer PC to be able to install and use their systems as any other computer? You could totally do your taxes on an Xbox if only Microsoft unblocked their already existing windows OS inside them. The current limitations are totally fake.
2. Game consoles: “but they sell at a loss”
If I decide to start a car dealership business, at a loss, does that mean that I get to have special treatment for being such a terrible entrepreneur/businessman?
The reason they started selling at a loss was to try to choke the others out of competition (which is on legal dangerous terrain). They got themselves into this, continuing at a loss is their choice.
And the “duopoly pricing” isn’t really a factor, you can buy a $100 Android phone and a $2000+ one.
Apple tends to not budge on this, selling a product at a loss? No way, no business = no product.
Nintendo tends to not budge on this either, they let the others fight it out, cheap out on hardware and offer value elsewhere (games that customers want to buy at the price they want to pay to play).
Ultimately, I don’t really care that it’s like that, my favorite console is actually the Switch: easy to pick, resume from sleep actually works, I don’t care that it doesn’t let me install excel or that it doesn’t have an RTX-something. My favorite tablet is an iPad Pro, does wonders for what it’s made for. My favorite PC is a Mac Studio.
What I care to point is that what’s good for the goose is good for the gander.