Profitability is nice, but it's not the key here, and it needs to be viewed in context. Gamecube making more profit than Xbox and Sony on hardware+games? Que? Any profit Nintendo made off the Gamecube, was considerably lower when compared to the profit made by Sony.
Playstation2 has sold over 100 million units worldwide today, Xbox has shipped 22 million before it was discontinued, and Nintendo sold only 18.5 million (those are the numbers according to what I managed to find in the Wikipedia, if you have other sources, please post em)
However, companies making profit off of the box is not the point here. The point are the game sales which the companies have a share of profit in. Out of the numbers above, and the consumer base buying games for said consoles, which one do you think took a bejeesused profit home? Nintendo made a "profit" because they discontinued the manufacturing of the Gamecube, since they were tanking. On the box. Compared to revenue Sony made from games, the difference in any kind of "profit" discussion is laughable.
Like I said. Middlemen. We're talking big buisness here, not how much some box is worth at retail price or if it matches the construction fees of the unit. You don't really think that they're insane and making something for a higher price while selling at a lower without a reason, right?
After all, that was the point of the Gamecube box making profit. They gave up on it, and as much money as it could bring in at the end, that'd be the punchline.
As far as Nintendo having money - yeah, they've been strong through the eariler third/fourth/fifth? generations, and I think we all know how much Gameboy, NES or SNES were ass kicking at its time. They have money stored away. But Microsoft makes a ****load off of Windows and other crap, and Sony likewise with their TV's, Cameras and the entire chokehold they have on the digital media market, not to mention the last 10 years of Playstation mania, the first PS selling over 100million units (and games) and PS2 as well.