Joined: 07 Apr 2003 Posts: 20349 Location: New Jersey
Posted: Wed, 23 Nov 2005 14:31:18 Post Subject: XBox 360 loses $126 for MicroSoft per sale
Quote:
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.
No surprise there, it's been said all along, they don't make the money on the consoles themselves. It's the add-on's and games that make them the money.
I wonder if those prices are for single item purcchases though. I noticed the HD by Seagate a 20gb HD, they show at $53. That's the price I pay for a 40gb HD online! I know MS isn't stupid, and they're not paying retail for them, when they are buying millions at a time. I would expect that they are getting a hefty discount. That $53 drive for us, is probably only costing MS $20 or less...
Likewise the DVD Rom they have listed at $21. I've seen DVD Roms for sale for about that online.
i agree with hellfire...it may add up so but they get huge discounts...personally i am not going to buy a console as much fun as they are i will stick with my good ol pc... _________________ Ignore this^^
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