11-25-2005, 10:27 AM
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Senior Member
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Join Date: Nov 2005
Posts: 108
Rep Power: 233
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Microsoft Could Lose $126 per Xbox 360
Wow. So they continue to lose money on them. I thought they might be able to make money with the 360.
Quote:
A new report on industry website Gamasutra.com publishes the findings of a new games industry survey today, revealing that Microsoft could be losing as much as 126 USD per Xbox 360 console sold. At launch, the original Xbox apparently lost about 125 USD per console. The research was produced by electronics firm iSuppli, who found that in the premium (hard-drive equipped console), the components within will cost 470 USD at current market prices. Apparently, these costs, plus those of the wireless controllers, power supply and cables (totalling 55 USD), bring the total loss to 126 dollars per package. That's before you account for the vast costs of distribution and of course Microsoft's hyperactive marketing department.
Reporting on the budget price pack, sold most notably sans hard-drive, iSuppli is reporting a loss of some 26 USD per pack, though Gamasutra.com notes that several other experts have estimated a loss in excess of this figure. Business Week meanwhile are quoted as citing an unnamed source within Microsoft, who apparently reveals that the Xbox division are hoping to break-even by the end of 2006, with profits from games sales and lower hardware costs hoped for in 2007. Of course, much will depend on the success of the Xbox 360 in the upcoming battle with the Sony PS3 not to mention the Nintendo Revolution. The PS3 is also expected to be sold at an initial loss, potentially a very high one, given the expense of Sony's new Cell CPU powering the forthcoming console.
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http://www.ferrago.com/story/6911
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