http://www.gamespot.com/news/6140383.html

 

Microsoft taking $126 hit per Xbox 360

 

BusinessWeek commissions study, which says the software giant is paying a premium on next-gen hardware.

 

When Microsoft got into the console game in 2001, much was made of the fact that it lost an estimated $125 per console on each Xbox. Four years later, that per-console-hit has tallied to $4 billion of red ink for the Redmond, Washington-based software colossus, whose current-fiscal-year forecast calls for $44.5 billion in revenue.

 

However, Microsoft seemed all too happy to fork out billions to become the number-two console maker in the world. The approximate 22 million Xboxes it has sold surpasses Nintendo's to-date sales of over 16 million GameCubes--but still lags far behind the 90-million-plus Sony PlayStation 2s in homes worldwide.

 

Now, it appears that history is repeating itself. According to a study commissioned by BusinessWeek, Microsoft is again losing around $125 per hard-drive-equipped unit of its brand-spanking-new console, the Xbox 360. To perform the study, tech researcher iSuppli took apart an Xbox 360 and examined the cost of all its components. It concluded that the hardware of each unit cost $470 disassembled. That means Microsoft loses $71 before each HDD-equipped 360 console goes to the factory, right around the $76-per-unit loss analysts predicted for the core Xbox 360, which has no hard drive, back in June. (Those same analysts also predicted shortages of the console, which then was believed to come in only one model.)

 

However, when iSuppli said the HDD-equipped 360 console cost $470, that's exactly when they meant--just the console itself. They didn't include the cost of the wireless controller, headset, Ethernet cable, universal media remote, combination high-definition component/standard A/V cable, and bricklike power supply that come in the box of the $399 Xbox 360 "Premium Pack." Factor those in, and Microsoft's per-unit-loss on each Premium pack comes to $126--just above the per-unit loss of the original Xbox--before one penny (or, more likely, yuan) is spent on labor.

By Tor Thorsen -- GameSpot

Posted Nov 23, 2005 1:32 pm PT

 

Bill Gates must REALLY want people to buy this machine

http://www.gamespot.com/news/6140383.html

Bill Gates must REALLY want people to buy this machine

 

They make it all back in spades on the games.

They make it all up on software.

They make it all up on software.

 

GMTA Spiffy

I had to look that one up, but yes, apparently they do.

Sony is going to take a 300$ hit per unit sold with the PS3, after announcing they will go ahead and luanch it at 400$.

 

 

Looks like I'll be sticking with Nintendo and their 200$ unit.

They make it all up on software.

This remains to be seen.

 

 

Costly games will now cost around 10 million dollars to make, nearly double that of what it was with XBOX/PS2/GCN.

 

Games are only 10$ more too.

 

I just don't think they will be able to compensate.

 

 

It seems Microsoft is just trying to be the industry leader with the 360, rather than try to make money off it as it stands. And if one company could afford to do it, it is Microsoft.

Sony is going to take a 300$ hit per unit sold with the PS3, after announcing they will go ahead and luanch it at 400$.

Looks like I'll be sticking with Nintendo and their 200$ unit.

We are the Knights of the Revolution.

wow this is all incredible to me...they aren't even making profit off of this? Solely for name recognition? Incredible

They make it all back in spades on the games.

 

 

Tell that to the fellas who created Sega Dreamcast

 

Great Games + Great System dont always = Great Money Maker.

 

I also know that if any company could absorb that kind of hit, it would be Microsoft. It cannot be pleasing to them to know that both times they launched a console, they took the same hit.

 

We are the Knights of the Revolution.

 

Im part of this club!

Tell that to the fellas who created Sega Dreamcast  

 

Great Games + Great System dont always = Great Money Maker.

 

I also know that if any company could absorb that kind of hit, it would be Microsoft.  It cannot be pleasing to them to know that both times they launched a console, they took the same hit.

Im part of this club!

 

Sega didn't sell Dreamcast games because people figured out how to rip/download/burn them.

We are the Knights of the Revolution.

 

Can I join?

 

 

Sega didn't sell Dreamcast games because people figured out how to rip/download/burn them.

 

 

I was soo happy when my friend sold me a used Dreamcast and about 15 ripped games (NBA 2K and World Series included )for 15 bucks (memory didn't work). Sadly, I left it on accident when I moved out of my apartment.

Can I join?

Absolutely. Right now it's me, you, B>W, and kyyle. We need a group sig or something.

Sega didn't sell Dreamcast games because people figured out how to rip/download/burn them.

 

And that didnt happen to Sony?

And that didnt happen to Sony?

 

no...

It seems Microsoft is just trying to be the industry leader with the 360, rather than try to make money off it as it stands. And if one company could afford to do it, it is Microsoft.

"It seems Microsoft is just trying to be the industry leader with their internet browser, rather than try to make money off it as it stands. And if one company could afford to do it, it is Microsoft."

no...

 

Whatever. My buddies were ripping gamediscs and modifying their PS1's before Dreamcast came out. Dreamcast was a poorly launched system, they didnt collapse because their games became downloadable.

Whatever.  My buddies were ripping gamediscs and modifying their PS1's before Dreamcast came out.  Dreamcast was a poorly launched system, they didnt collapse because their games became downloadable.

 

Modifying, yes, so they could play games from Japan. Nobody even owned cd burners when the PS1 was around.

Modifying, yes, so they could play games from Japan.  Nobody even owned cd burners when the PS1 was around.

 

I played burned games on PS1, back in '99 or '00. I don't remember when the PS1 was released though, so it may have been pretty late in the game.

no shocker that the 360 is havin trouble, it was just put out on the market, what did everyone expect, a perfect prodcut, i think not

no shocker that the 360 is havin trouble, it was just put out on the market, what did everyone expect, a perfect prodcut, i think not

A product that actually works would be fine.

You can ModChip the Playstations and Xbox's. I have never done it but I know people that have.

 

I assume it was easier to do on the dreamcast? I know for PS2's or Xboxs you sometimes need to sodder and for Xbox you need to buy a large harddrive to utilize it.