Xbox 360 Costs Microsoft $153
iSuppli Corp. analysts have reported that Microsoft loses at least $153 on each Xbox 360 video game console it sells.The parts such as processors and manufacturing costs around $552.27 for every machine that retails at $399. Marketing and shipping costs aren't included in the estimates. The premium version of the games machine uses an IBM processor that costs $106. Other IBM chips bring the total cost of chips and integrated circuits to $340 per console, the researcher said.
Bill Gates is betting that the Xbox 360, Microsoft's only unprofitable unit last year, will bolster sales of the company's other products to consumers. The Xbox 360 will also be profitable over the life of the machine, unlike its predecessor. Microsoft gets $7 to $8 hardware royalties for each game made by outside companies, and more on games produced by its own game studio.
posted by Bob Narley @ 4:46 AM
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