I would guess a lot of it is just about the budgets of the games and the cost of buying studios and infrequent releases. If a studio takes five years to release a $300 million game (purely hypothetical) you're basically operating at something like a $60 million loss on that studio each year until they start generating revenue. Multiply that same logic to many game studios. Your margins probably become small because you're floating a ton of dev studios that aren't currently making any money. And then you have acquisitions that are being paid off. I think payments for Bungie were mentioned somewhere above.
Elden Ring was pretty expensive to make, but I'm not sure Nintendo falls into the same category of huge budget games or acquisitions. I'm sure their bigger games aren't cheap to make, but probably not the same as an Elden Ring or Spiderman 2.
Edit: Also I'm sure doing things like cancelling Naught Dog's multiplayer game is a big loss. You're paying for years of development and in the end generating zero revenue. That probably eats into your margins, though now that development has stopped your expenses drop, or at least get shifted onto something that'll eventually generate revenue.
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