Microsoft Loses $126 Per Unit on XBox 360 725
ahess247 writes "BusinessWeek has taken a look at the insides of the XBox 360 and with the a little help from market researcher iSuppli determined that Microsoft is continuing its tradition to taking a big loss on the console in hopes of making a profit on games. From the article: "An up-close look at the components and other materials used in the high-end version of the Xbox 360, which contains a hard drive, found that the materials inside the unit cost Microsoft $470 before assembly. The console sells at retail for $399, meaning a loss of $71 per unit -- and that is just the start. Other items packaged with the console -- including the power supply, cables, and controllers -- add another $55 to Microsoft's cost, pushing the loss per unit to $126."
Cmon Modders (Score:3, Funny)
Yeah, but they make it up on volume. (Score:3, Funny)
Die Microsoft! (Score:1, Funny)
Tell you what (Score:5, Funny)
I'll make you a deal, Microsoft. If you send me 100 bucks, I won't even buy an Xbox.
$126 times 3 million units = $378 million (Score:3, Funny)
Microsoft has been out of the "making money" business for so long. All Gates really wants is attention at this point.
Only $126 ???? (Score:3, Funny)
Now's our chance! (Score:5, Funny)
Re:You ever been to Wal-mart? (Score:2, Funny)
Kierthos
Comment removed (Score:2, Funny)
Re:Selling The Hook (Score:2, Funny)
BTW - hello Sweden! I'm a big fan of your bikini team.
Re:Clever Marketing Campaign (Score:4, Funny)
Still, you could have fun smashing it in public [smashmyxbox.com].
I have a cunning plan... (Score:5, Funny)
2. MS loses 25.2 trillion dollars.
3. No one buy any games for these 360's so no royalties go to now bankrupt MS.
4. Port OSX and Linux to Xbox 360.
5. Network together all 200 billion 360s to make ULTRAMAX, the supreme overlord computer that controls everyones daily lives.
6. ??? (who knows what the future will hold then).
Let's get going on this people.
Re:You ever been to Wal-mart? (Score:3, Funny)
come for the soda, stay for the ecstasy? sounds like a good business model.
This is definitely a scam (Score:3, Funny)
People just post these XBox money-loss stats to speed development on the Linux port. ;^)
Re:You ever been to Wal-mart? (Score:3, Funny)
Re:I have a cunning plan... (Score:3, Funny)
The Linux Game (Score:4, Funny)
Re:I have a cunning plan... (Score:2, Funny)
Re:Selling The Hook (Score:3, Funny)
While there clearly exist animalistic individuals who are devoid of self-control or rational planning capacities required to use heroin and cocaine responsibly, many of us find that these, like numerous other less vividly painted chemicals, are useful adjuncts in living rich and fulfilling lives, with high productivity, minimum pain, robust mental health, and good social relationships.
Re:Sony (Score:3, Funny)
Apparently that's what they're doing. [slashdot.org]
ooh! (Score:4, Funny)
Is that before or after you factor in the cost of (Score:3, Funny)
Just curious. I'd sooner Microsoft lost money big time with this little venture.
Re:Selling The Hook (Score:3, Funny)
Atari was late to the game. I'm guessing that you weren't around in the Magnavox Odyssey vs. PDP-11 battles. Magnavox CREATED the market.
PDP-11 had superior hardware but their controllers sucked and didn't have the licensing that Magnavox had.
Magnavox Odyssey was THE console from 1 to 2 until Kerplunk then Atari vs. Intellivision battles began.