Thats one way to phrase it.
The other way to phrase it is Sony, Microsoft, Nintendo, etc have historically sold their hardware well below cost because consoles have usually been cutting edge technology out of reach to consumers at the price point needed to make it a toy for children. So yes, they have historically subsidized hardware with their revenue sharing on the software.
Vs when you go out and buy a $1200 iPhone, Apple is making a 30% profit, not a 30% loss.
This simply shows that iPhone is valuable to its buyers also for reasons other than being able to play games on it. Apple makes profit from iPhone as they should. It's much more than a games console / entertainment device.