The PS5 was breaking even less than 6 months after its release. They don't subsidize anything. BTW, Nintendo also don't subsidize it. The BOM of the Switch 1 and 2 is lower than the total price including the margins for retailers!
This is a conversation about Sony, not Nintendo. As far as I can tell from current data, Sony is still subsidizing PlayStation consoles overall.
Shops and distributors take a big chunk. The shoppe price is not given in whole to manufacturer if it was who would be paying the shoppe rental and employees ?