Nintendo don't sell at a loss and they have done pretty well. They don't need gamepass on sony, they can sell them full price games for the privilege of playing COD and co.
They usually all sell at/near a loss at launch, but as the tech ages it becomes cheaper to produce and they start breaking even or make a small profit.
The Switch is so old at this point that it probably costs very little to produce, relative to the launch production costs.