Does Microsoft Or SONY Need To Be The Market Leader In Order To Make Profit?

From consoles sales perspective, what does it mean to either Microsoft or SONY if they failed to control the largest market share?

I mean, couldn't either one of them make profit, like the GC did last gen, if ended up last this gen?

No, Microsoft is making money on hardware now but that might be offset by the cost of replacing defective consoles.

But they also have software sales they can count on to push them into the black.

Does the money lie in software or hardware?albi321