Xbox 360 - costs $715 to make

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<P><U><STRONG>Xbox 360</STRONG></U>&nbsp;wasn't suppose to generate money from the start. Microsoft published figures that stated it would lose $126 for each Xbox 360 it sold. According to an insider scoop that Hardware Hell has published the figures are considerably higher than that, a lot higher even. According to a high source at IBM each Xbox 360 console costs $715 to make, which then would generate a pure loss of over $300 or $400 for the each of the two units. This really shows how much Microsoft is willing to spend to take down Sony, which has been dominating the market the last couple of years and I don't think there is anyone who doubts that&nbsp;Microsoft can afford to play the game this way though. This&nbsp;story doesn't end here most likely.</P>
<P>Source <U>Hardware Hell</U></P></SPAN>

[[NH]BigBen2k]

A dubious source.

MS was taking a $200 loss on the original console, so $126 seems to be fair today.

What I don't understand is how MS is permitted to get away with it: the FTC (Federal Trade Comission) that regulates such things as unfair pricing, price gouging, and undercutting a competitor (all of which are illegal in the USA) has not been brought in (that I know of). I believe that MS is using a legal loophole by which the box and the games make up the whole product.

So while MS is loosing money on the consoles, it's gaining on the sales of games. Has anyone compared the pricing structures of the console-games for MS/Sony/Nintendo? That would be an interesting exercise.

[Delph1]

If you compare the prices of the old consoles' games their all pretty much the same, but then again there aren't so many new games around today. Nintendo being a little more expensive most, likely because of the media they use.

However the games for Xbox 360 are expensive, very expensive even compared to what the old ones cost. But a pure $300 loss is a bit much imho and then you still have get a game to play
Not a good way to fight piracy either, but since the games have already leaked, well not much to do there.

//Andreas