Microsoft Loses Hundreds of Dollars on Every Xbox 360

jmke · 27th November 2005, 18:13

Microsoft Corp. loses hundreds of U.S. dollars on every Xbox 360 game console it sells, according to market analysis firm iSuppli. According to the company, the most expensive components of the console are graphics processor developed by ATI and central processing unit designed by IBM. The company expects Microsoft to lower product cost to the level at which the consoles are sold today in a year from now.

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 – the total bill of materials (BOM) cost for the Xbox 360 Premium reaches $525, well above the retail price of $399, iSuppli said. The high BOM cost for 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.

more @ http://www.xbitlabs.com/news/multime...123214405.html

The Senile Doctor · 27th November 2005, 19:42

unbelievable, huh

they'll win 'em back quite heftily in 2-3 years...

27th November 2005, 20:33

they didn't on the first XBOX

but it only costs them pocket money, 4bn

27th November 2005, 18:13	#1
jmke Madshrimp Join Date: May 2002 Location: 7090/Belgium Posts: 79,022	Microsoft Loses Hundreds of Dollars on Every Xbox 360 Microsoft Corp. loses hundreds of U.S. dollars on every Xbox 360 game console it sells, according to market analysis firm iSuppli. According to the company, the most expensive components of the console are graphics processor developed by ATI and central processing unit designed by IBM. The company expects Microsoft to lower product cost to the level at which the consoles are sold today in a year from now. 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 – the total bill of materials (BOM) cost for the Xbox 360 Premium reaches $525, well above the retail price of $399, iSuppli said. The high BOM cost for 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. more @ http://www.xbitlabs.com/news/multime...123214405.html __________________

27th November 2005, 19:42	#2
The Senile Doctor Member Join Date: May 2002 Location: wherever the doom is Posts: 3,171	unbelievable, huh they'll win 'em back quite heftily in 2-3 years... __________________ OC-2-the-death Where the Reverend is doing his Magick, all mortals be silent Doom over the world

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27th November 2005, 20:33	#3
Rutar Posts: n/a	they didn't on the first XBOX but it only costs them pocket money, 4bn