Since the console is very low on writes they can probably make these like 0.3DPWD for fairly cheap at Sony scale.
So at that point of needing a pretty big SSD, make the console less expensive by only having the SSD, then let the user plug in a cheap external hard drive. Five minutes to transfer a game is pretty reasonable.
The Apple TV does some really interesting stuff with how it manages large games and files. Too bad it doesn't ship with a controller.
https://www.extremetech.com/gaming/251038-theres-no-profit-m...
https://attackofthefanboy.com/news/microsoft-small-profit-ma...
https://www.forbes.com/sites/timworstall/2013/11/20/at-399-r...
Seems like Sony was the only one selling at a slight loss (compared to the PS3's heavy 200+ USD loss per unit) and it's most likely improved for everybody since.