NEWS - Saturday, June 7, 2003
Microsoft To Cut Costs On Xbox
An article on The Register quotes CEO Steve Ballmer in stating that Microsoft has "aggressive plans" to reduce the cost of goods sold in its Xbox division. As it stands, Microsoft makes a significant loss - thought to be over $150 - on each Xbox console it sells, and the Home and Entertainment Division of the company, which houses the Xbox project, regularly turns in large quarterly losses as a result. Ballmer said the company will reduce the cost of goods sold to manage costs and increase growth without employee layoffs. Significant steps have already been made in slashing Xbox production costs, including moving manufacturing to China from Hungary, and replacing some components with cheaper alternatives.Source: http://www.xboxaddict.com/