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Posted by Nomad on 01/18/07 23:28
<getrich@1upandup.com> wrote in message
news:1169157443.476871.193220@q2g2000cwa.googlegroups.com...
>
> 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
>
Rich, that's based on retail. Microsoft doesn't make money off the retail
price, their money is made off of the price at which they sell it to the
retailer or the wholesale price. It's possible they are close to breaking
even on the console with games putting them in the profit column.
Nomad
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