28/11/2005

Digit LIVE news - Microsoft 'losing money on Xbox 360'

Digit LIVE news - Microsoft 'losing money on Xbox 360'

The cost of an Xbox core is thought to be around $310 while it's selling for $299.99 (in the US) and the Xbox 360 Premium costs around $525 while it sells for $399.99, Microsoft have denied the losses saying they make a (small) ammount per sale.

Even if they do make a loss on the consoles themselves, games are very high margin as the actual sale consists of DVD dupplication, a manual and packaging. Even after software development costs have been taken out, the games soon pay for themselves (and make huge profits for popular games).

Though Sony have dominated the console market in recent years, the Xbox 360 is a truely powerful machine which is much easier to program than the PS3. Taking advantage of the PS3 Cell multi-core processor will be very difficult.

MS are trying to be at least somewhat open with the 360 and want it to be the media hub in the house and if they get that right they have got the chance really make a difference.
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