Microsoft Loses Money on Every Xbox 360

[i l l m a t i c]

XBox 360 Premium costs 525$ to manufacture.

 

According to to market analysis firm iSuppli, factoring in costs for the hard disk, the DVD drive, enclosures, the Radio Frequency (RF) receiver board, power supply, wireless controller, cables, literature, and packaging reaches $525, well above the retail price of $399. The high cost of the Xbox 360 is not unusual. In the video-game business, equipment producers often market games consoles as loss leaders for more lucrative software and licensing fees.

 

 

Link

[Elazul Yagami]

quite standard fare.

 

sony did that quite a few times.

and so did nintendo.

 

(and sega when it was forced... oh how i long for the good old sega days)

[olaf]

old news, and on top of that -- $100 or so every xbox 360 isn't much to microsoft, corporation headed by the richest man in the world.

[Gryph]

Losing money on hardware is nothing new. Sony is probably going to lose even more on each PS3.

 

Surprisingly, Nintendo is the only ones that didn't lose money on hardware. I was surprised since the hardware wasn't that bad really, better than what the PS2 had IMHO.

[Wizard]

Everything, and more, in a previous thread!

[Ryuken]

so most systems lost money on harware and make money on their games?? is that y games cost so much now a days ??

[ken_cinder]

so most systems lost money on harware and make money on their games?? is that y games cost so much now a days ??

 

Yeah pretty much given that developers have to pay multi-million dollar liscening fees in order to sell you and I a game. And since Nintendo is aiming less away from "High end, top of the line BS" you can probably expect Revolution games to be less than 360/PS3 games.......mind you not by much.

[Ryuken]

so most systems lost money on harware and make money on their games?? is that y games cost so much now a days ??

<{POST_SNAPBACK}>

 

Yeah pretty much given that developers have to pay multi-million dollar liscening fees in order to sell you and I a game. And since Nintendo is aiming less away from "High end, top of the line BS" you can probably expect Revolution games to be less than 360/PS3 games.......mind you not by much.

<{POST_SNAPBACK}>

 

I c, well they won't be making any money from me, since i don't buy games that much, i "borrow" them

[Inky]

as far as game prices go I can remember NES games going for 35 to 45 dollars back in the day, so 50 to 60 bucks for a game nowadays isn't bad really. factoring in inflation and how long it takes to make a game these days it's pretty damn good really.

[Weirdy]

you could always wait a while and buy used games

[ken_cinder]

Remember how much 3DO games went for? No wonder I saved up my money for one, and only had one game with it.......sold it later because I couldn't afford around $100 a pop for a game.

Games for Atari ST used to run upwards of $400 depending on the title. I remember looking at this one flight simulator in a store, that was $449. Can you wonder why I only owned 1 retail game, and about 5000 pirated games.......and ZERO retail applications? Not that all of them were that retardedly priced, but many were easily over $100.