NEWS - Wednesday, November 23, 2005


Microsoft Losing $126 On Every Sold Xbox 360

Microsoft’s newest gaming console marks an improvement on the earlier version in some decisive ways. To name a few, the pricier Xbox 360 is sleeker and more powerful (see BW Online, 11/22/05, "Xbox: How It’s Designed to Thrill"). And unlike its predecessor, the Xbox 360 is being released months ahead of the comparable next-generation console from Microsoft’s chief gaming rival, Sony. But when it comes to profitability, the new machine won’t change anything. Microsoft will carry on its tradition of taking a loss on the console, according to a preliminary analysis by market researcher iSuppli. An up-close look at the components and other materials used in the high-end version of the Xbox 360, which contains a hard drive, found that the materials inside the unit cost Microsoft $470 before assembly. The console sells at retail for $399, meaning a loss of $71 per unit -- and that is just the start. Other items packaged with the console -- including the power supply, cables, and controllers -- add another $55 to Microsoft’s cost, pushing the loss per unit to $126. These estimates include assumptions that Microsoft is getting a discount on many components.
Source: http://www.gameinsider.com

Site Statistics

Registered Members: 76,379
Forum Posts: 725,959
Xbox One Titles: 5,201
Xbox 360 Titles: 1,086
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 586
Original Xbox Titles: 987
Staff Reviews: 2,458
Member Reviews: 10,339
News Articles: 16,514
Screenshots: 37,783
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News








See News Archives

Community Forum Activity

KeyWe Giveaway!
Post by Variation-XBA
0 Replies, 16231 Views

2021: XBA is still here
Post by shrew king
32 Replies, 125162 Views

Watch Dogs: Legion
Post by Nato King
0 Replies, 98441 Views

Xbox Series X or S
Post by Nato King
5 Replies, 114557 Views

Spellbreak Grand Magus Pack (3) and Starter Pack (7) Giveaway!
Post by Variation-XBA
0 Replies, 108435 Views

I pay $ 1000! I search the Element 54 Canadian launch Team signaturen Faceplate
Post by Smill
0 Replies, 123939 Views

Xbox one no signal
Post by debrartin
0 Replies, 121924 Views

do you remember?
Post by SnoochyBoochy
3 Replies, 159815 Views

i haz xbox
Post by SnoochyBoochy
0 Replies, 123576 Views

Claiming the first thread of 2020
Post by Kraft
7 Replies, 202468 Views

Important! I pay $ 1000! I search the Sweden launch and the Element 54 Faceplate
Post by Smill
3 Replies, 121830 Views

Squad Up
Post by samslophead
0 Replies, 213034 Views

TERA Skinned Xbox One X Giveaway!
Post by Variation-XBA
0 Replies, 151714 Views

Starfield Release expectations?
Post by DJ tx
4 Replies, 265092 Views

Issue with Xbox live on Xbox home
Post by rcmpayne
0 Replies, 148194 Views

© 2000-2023 XboxAddict.com - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. XboxAddict.com is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics