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Posted by getrich on 01/18/07 21:57
Doug Jacobs wrote:
> In alt.video.dvd MassiveProng <MassiveProng@thebarattheendoftheuniverse.org> wrote:
>
> > Got Clue?
>
> Well, you're certainly in need of one...
>
> The 360 is still being sold at a loss now, and so will the new revision,
> due out later this year:
>
> http://www.gamespot.com/news/6127039.html
>
> Granted, a loss of $75/console is pretty good, but it's still a loss.
>
> It's important to note that selling hardware at a loss does not preclude
> the console from making a profit. These are different calculations. $75
> loss per console would mean that Microsoft would start making money after
> that person bought 4 or more games.
That was Summer 06. As of now, it is believed that the 360 costs
Microsoft less to manufacture then they are selling it for, thus making
a profit:
http://www.isuppli.com/news/default.asp?id=6919
In contrast, the HDD-equipped Xbox 360 has a manufacturing and
materials total of $323.30, based on an updated estimate using costs in
the fourth quarter of 2006. This total is $75.70 less than the $399
suggested retail price of the Xbox 360.
As of late 2006 (about 6 months later than that article), Microsoft is
makig a profit on each 360 it sells.
Microsoft plays this game with Sony, and even remains even, they drive
Sony into bankruptcy, with each sale of the PS3 being a nail in the
coffin for Sony.
- The Rich
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