Unexpectedly low. Conventionally you're selling this product to Gamers™ who will have at least one annual franchise they buy, (e.g. a sports game) and then pick up a few titles at the start plus one or two big titles. So you hit your desired attach rate and then it's profit. But if people buy your console, plus one game, and then are happy, with that model you are screwed.
It's actually doubtful whether they were really selling at a loss per se even then, most likely the notional loss represented amortizable R&D. Which is a loss on your annual balance sheet but - if you understand your business, can finance the R&D cost affordably and have a steady nerve so as to stick with the plan - this can be profitable eventually. The era of straight up dumping (exporting products for less than their BOM price, which may be illegal in some international trade rules) was last century. In the Sega era it really was possible you'd spend $100 on the actual product, sell it for $80 and figure you'll make up for it on royalties.
It's actually doubtful whether they were really selling at a loss per se even then, most likely the notional loss represented amortizable R&D. Which is a loss on your annual balance sheet but - if you understand your business, can finance the R&D cost affordably and have a steady nerve so as to stick with the plan - this can be profitable eventually. The era of straight up dumping (exporting products for less than their BOM price, which may be illegal in some international trade rules) was last century. In the Sega era it really was possible you'd spend $100 on the actual product, sell it for $80 and figure you'll make up for it on royalties.