Sexbox360 -profit.Move this. I dare you.

[Gimmi]

"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."

Source: http://games.slashdot.org/games/05/1....shtml?tid=211

 

[ST]

[glow=black]Move to Xbox Forum. It's there for a reason. Chit-Chat is an activity whore .
On topic: LOL![/glow]

 

[Gimmi]

Xbox forums suck.
this thread has negative views now.

 

[jd-inflames]

This happened with the original XBOX as well, no surprise here. Microsoft, however, still makes bank, and that is just off of games. They won't be hurting too bad in about 2 years or so, I promise.

Sgt.Slice. Go back home to the Asylum.

 

[COTA-GoD]

All consoles lose money on hardware. Its software that they make money on.

 

[Trojan]

What lee said. They lose money on assembly of the console and the parts but gain it back in the sales of games. Most games for the next gen consoles will cost around $60.00 USD instead of $49.99.

 

[Arkillo]

This happened with the original XBOX as well, no surprise here. Microsoft, however, still makes bank, and that is just off of games. They won't be hurting too bad in about 2 years or so, I promise.

The loss grew as the Xbox became available around the world, driving up segment revenue from $833 million to $1.28 billion. In the video game console industry vendors typically lose money on each console they sell, but try to earn that back when selling games, accessories and services.

Source. http://www.itworld.com/App/4201/030203xboxlosses/

I'll find more stating that Microsoft will never recover from the XBox and X360, I just have to backtrack and search.

 

[COTA-GoD]

What lee said. They lose money on assembly of the console and the parts but gain it back in the sales of games. Most games for the next gen consoles will cost around $60.00 USD instead of $49.99.

note that the increase in price of the games is not really for the console price to make money back quicker. Development of games cost a lot more now.

 

[Sicloan]

They also get parts in bulk, so while RETAIL they may be selling at a loss, you musn't forget that they get parts at COST, meaning they will make money.

 

[Lights]

Source. http://www.itworld.com/App/4201/030203xboxlosses/

I'll find more stating that Microsoft will never recover from the XBox and X360, I just have to backtrack and search.

Yes, they definantly lost loooots of money off of the first Xbox, but I'm pretty sure they planned for that. At the same time, though, they got into the console race and some would say even took the lead of it. Just like that 'Xbox' is mentioned on the same level of PlayStation and Nintendo. Not bad.

They might end up losing more money on the 360, but only time will tell. I suppose we will see how Halo 3 does. :/

 

[ReiGn]

M$ lost $4 Billion on xbox.

 

[dArKmIsChIeF]

NO! Dude, its SexBox 3 69...come on now...

 

[Emperor Pan I]

Well, microsoft in 5 years lost 4 billion simply investing in the Xbox.

Also what you said is false. Nintendo typicaly doesn't lose the money when selling hardware. In comparison, both Ps2 and Xbox lost their companies at least $100 when launched, as opposed to the gamecube who either broke even or made a profit. Mind you Nintendo is still in third.