Microsoft Loses $126 Per Unit on XBox 360

ahess247 writes "BusinessWeek has taken a look at the insides of the XBox 360 and with the a little help from market researcher iSuppli determined that Microsoft is continuing its tradition to taking a big loss on the console in hopes of making a profit on games. From the article: "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."

Comments

Tell you what

[Paladin144]

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.

I'll make you a deal, Microsoft. If you send me 100 bucks, I won't even buy an Xbox.

Now's our chance!

[Shadow Wrought]

If you , me and 175,000,000 of our closest friends all but one this weekend, we'll bankrupt the buggers! w00t!

I have a cunning plan...

[sgant]

1. Buy 200 billion Xbox 360s.
2. MS loses 25.2 trillion dollars.
3. No one buy any games for these 360's so no royalties go to now bankrupt MS.
4. Port OSX and Linux to Xbox 360.
5. Network together all 200 billion 360s to make ULTRAMAX, the supreme overlord computer that controls everyones daily lives.
6. ??? (who knows what the future will hold then).

Let's get going on this people.