If you violate a court order in my country you get sent to prison. China is so progressive that you aren’t even put under house arrest for the same offense.

The ABC (Australian public broadcaster) did a thorough explainer debunking many of the myths around it recently.

Audio; https://www.abc.net.au/listen/programs/if-youre-listening/the-truth-about-chinas-social-credit-scores/106029740

Video; https://www.youtube.com/watch?v=Ps0Si4FhOPM

Consoles are usually sold at a loss and profit is made on the software i.e games and nowadays subscriptions. Selling hardware at a loss with no follow up is going to hurt.