Biggest thing with consoles is they lose money immediately when they make them. How many companies are going to invest in that?
This isn't strictly true. The first console Nintendo sold at a loss was the GC and that only lasted a few months before cost of components and increase in efficiency of production started making it break even. The Wii, being almost identical to the GC hardware (seriously, emulators for the Wii were out in a couple of months based on a GC emulator), was never sold at a loss. The Wii U is being sold at a minor loss, a game or an accessory purchase makes it break even. The PS2 was sold at a profit for its entire lifespan and the PS3 selling at a loss had a lot of factors, wanting Blu-Ray to win the format war, etc.
In fact the whole selling consoles at a loss thing has a very specific origin. May 1994, at E3. Two consoles that are already out in Japan, the PSX and the Sega Saturn, both selling for $500 (which sounds like a lot, but with the exchange rate at the time minimum wage in Japan was $3000 a month, so less than a week's for a minimum wage worker), are releasing in North America. Sega announces a pricepoint of.... $399 and it is releasing today! Surprise Sony! We beat you to market.
Sony's whole presentation, no mention of price. They have this huge press conference. At the very end the president of Sony, walks up, says "Two hundred and ninety-nine dollars" and turns and walks out. Says literally nothing else. This causes Atari to claim that Sony is "dumping" by selling consoles below cost which, believe it or not, was unheard of. Atari actually said they'd try and stop the PSX getting released before they let someone sell a console below cost.
Fast forward four months and the PSX comes out. RAM has gone from $50/megabyte to $20/megabyte, Sega dropped the Saturn to $299 to compete at the same price point. The PSX is selling at minor profit and the Saturn is the first console to be sold at a loss. They even asked retailers to take a small loss per console sold, "A modest $15 per console." Most retailers said no. Sega also tried to achieve market saturation by selling the Dreamcast at a loss and it essentially bankrupted Sega to do it. It cost them $800 million before they cancelled the Dreamcast.
Next console to sell at a loss was the Xbox and they were copying the Sega model. Buy off the shelf parts, have someone else build it, and lose money to push units and increase the install base, but they had a lot more money to push at the idea. The 360 was also sold at a loss, though for a shorter period, except it doesn't factor in RROD which must have seriously impacted overall profits. MS still hasn't released exact failure rates due to RROD so we'll probably never know, but it must have cost a fortune.
I'll be curious to see if the PS4 is selling at a loss or not and for how long.