I think Nintendo first party games are great. And I certainly don’t think they’re losing money… the Switch has the most global sales of any current console by a lot. In fact, the PS2 is the only non-Nintendo console to have sold more.
I don’t think Nintendo loses money on their consoles. With the original switch, and this switch 2, they specifically went with old and slow hardware to ensure the margins work out.
What about non steam games? Maybe I’m in the extreme minority, but my most played games are things like Microsoft Flight Sim, DCS, Star Citizen, Elite Dangerous, which not only have their own launchers etc (one of which is tied directly to MS), they also require peripherals… sometimes lots of em, that have config and/or telemetry software that is all built in windows.