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Thread: Xbox 360 costs $715 to make

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    Jared Moya's Avatar

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    Xbox 360 costs $715 to make

    Earlier numbers by Business Week may have reported that Microsoft is losing $126 on every Xbox 360 sold. That figure is now believed to be a bit higher by some. According to Insider Scoop, the world's largest software maker is losing upwards of $300 per console sold. From the article: "A high ranking friend at IBM, one that worked on the Xbox 360 chip design, tipped us regarding the real expenses involved in manufacturing the Xbox 360... 'It costs Microsoft approximately $715 to make, the manufacturing costs are still too high, another reason why they’re producing relatively small quantities.'”

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    pimpinaman's Avatar

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    ...ahhh they will sell more 360s when folks get the box hacked...

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    microsoft will make their money back by selling the games *probably already made enough money for that already*.

    everyone makes money off of this.
    blockbuster might sell the new xbox games package deal for unlimmited rentals, they do that with some other console platforms already.

    all about making money
    bwhahaa

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    mountain_rage's Avatar

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    Im still not impressed with the system, ive been playing games on my pc for about a year now that look just about as good as games on the xbox 360. I dont even have a gaming pc. Quite frankly if thats the amount of money they are loosing microsoft is just stupid. That means for every system they need to sell about 15 games to break even. Assuming they only make 20$ a game.
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    smurf herder

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    Microsoft also lost money on each original Xbox. Reckon they can afford it though...
    They said on the news that tests on monkeys showed HIV can be spread through oral sex. What I want to know is, who had to blow the monkeys?

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    I just realized that 360 x 2 = 720.

    That is almost $715.

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    im staggered at the cost-- I knew they were expensive 2 make
    but no where near that price

    Im wanting one more n more now
    i personally think that the games look awsome
    nice thread

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    Auggie2k's Avatar

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    A little off topic but it costs Volkswagen £5,000,000 for every Bugatti Veyron they make and they sell it for £830,000.

    Why? They only built that car (1000HP with four turbochargers) to prove that it can be done. That's a lot to be wasting.

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    shawners's Avatar

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    Actually licensing software companies to make it, then xbox live will draw in money, third party hardware will bring some in, xbox is a trademark and can license to what ever developer, plus their own games that they publish, it will be awhile before they make money, but when you manufacture 1000's of xboxes, the cost of making them does go down, the parts they are using will cost lower after they get out dated.

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    Auggie2k's Avatar

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    Yeah of course, mass reproduction.

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    Atheist Icon's Avatar

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    Quote Originally Posted by Auggie2k
    A little off topic but it costs Volkswagen £5,000,000 for every Bugatti Veyron they make and they sell it for £830,000.

    Why? They only built that car (1000HP with four turbochargers) to prove that it can be done. That's a lot to be wasting.
    They will make a lot of that money back when you can only buy their parts...Its a 1006 HP W-16 with 4 turbos....oh jeebus is it beautiful...if i only had the 1.2 million for it...

    anyway, MS will be making their money back when you buy the remote to control DVD's, the wireless controllers, blah blah...and they are planning to sell an external HD-DVD player for it soon...and after that, the blue-ray DVD player...
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    trust me what ever they are doing they know wut is going on. Its ol billy gates he wipes his ass with 100's i mean would it hurt him if he gave me 500$ it would be like throwing a napkin away to him. I heard he drives a saturn
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    Auggie2k's Avatar

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    Quote Originally Posted by Atheist Icon
    They will make a lot of that money back when you can only buy their parts...Its a 1006 HP W-16 with 4 turbos....oh jeebus is it beautiful...if i only had the 1.2 million for it...

    anyway, MS will be making their money back when you buy the remote to control DVD's, the wireless controllers, blah blah...and they are planning to sell an external HD-DVD player for it soon...and after that, the blue-ray DVD player...
    It is unbelievably beautiful yes. It was on Top Gear a couple of weeks back and I was just in awe.

    Peripherals always make back a lot of money. The Xbox costs $715 but you need a lot more that just the Xbox to use it.

    Ok there's cables, hard drives, wireless controllers, string, remotes, games, cooling systems, string, dvd players.

    Did I miss something?

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    cjules13's Avatar

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    MS just broke even recently on XBOX 1.

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