None of those things can happen indefinitely. Loss leaders make up their profits on the back end; the classic example in this industry is selling a console at a loss while selling software at higher margins.

AI is still in the investment phase. By anyone’s account, this is a bubble about to burst, investing in something that doesn’t generate enough money to justify the investment. It won’t do that forever. I’d be surprised if it continues without a major correction in a few years. No one can predict how or when it will happen, but we’ve seen so many bubbles throughout history. They all need sustainable profit eventually, or they become a disaster. Gaming already had its own bubble in the wake of the pandemic, and that’s where these layoffs are coming from.