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Xbox 360 costs $715 to make - Page 3

post #21 of 24
Exhausted Mule:

It is a well known fact that they are losing money on the consoles, they are not, however, losing money on peripherals and games.

Now, how much they are losing on consoles? Thats up to an analyst to figure out, but I highly doubt that MS would publish the amount they are losing. Investors don't like to see alot of (xxx.xx).
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Raven
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post #22 of 24
The idea is to get as many boxes out no without drowning the company to death. They sell licencing agreements to manufactures to use there platform and the cost of those licences as well as the line size of manufactures wanting them wholly depends on the number of systems the console company can get into peoples homes. Ask Atari how well they sold Jaguar licences when they had about 200 in homes worldwide. Its kinda like dressing up a Washington hoping he comes home with some Jacksons for friends. If the risk of selling small to gain large in the long term wasn t there then companies would never do it. Remember that gaming is a multi billion dollar industry and the ones who put the most systems into the publics hands will generally hold the lion s share. Least thats my take on it, peace.
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post #23 of 24
meh, i preordered 4 from different gamestops and eb games in my city. Sold them all on ebay at a buy it now price of $900. Three of them were bought at that price and one was bought at $840. Hooray for people with more money than brains.
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post #24 of 24
Companies that produce games (Like EA, Bungie, Dice and so on) have to pay microsoft a huge "tax" for every game they want to release thats xbox compatible. Then microsoft gains a slice from how many games is sold. Thats where most cash runs in. I doubt that their money losses are that high, cause when they do deals with the manufactrures they dont pay standard (like for us) prices, they get it alot cheaper. Especially when they order in big numbers.
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