Microsoft loses 120 $ per sold Xbox - huge profits on rest

I just posted the article Microsoft loses 120 $ per sold Xbox - huge profits on rest.

According to an article on the Finanical Times, that is mainly about the financial position of Microsoft, the company loses about 120$ on every Xbox that is sold. It was already known that…

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This is nothing new, every video game company loses money on a console because they make all their money from game licenses. It takes 4 or more years before they can make a console cheap enough to not lose money, but even then the price changes match their cut costs and they still lose. Actually there have been reliable rumors that Nintendo breaks even on the GameCube, which in the video game industry is virtually unheard of.

I don’t recall Nintendo taking that long to turn a profit. Aren’t they already making a profit off the game cube software. But some of the hype for the XBox has died down, especially since the stance they took toward the mod chips. So there’s a chance that XBox stuff will only sell slower. But, my friends are still addicted to Halo pretty bad. So I don’t know.

don’t like M$ ,buy a zillions of Xbox :stuck_out_tongue:

Seeing as most folks on here equate a modded xbox with pirated games… it’s no wonder MS has taken that stance… seeing as that’s where their money is.

There no room for so many consoles in the market anyway. The problem is the consoles cost to much to make unlike the old days where the Nes was sold at a reasonable price and Nintendo could still make a profit off it. If they cant make a profit off the consoles and some people are too cheap to buy the games and pirate them I guess there be a few cry babys going why why why when they pull it off the production line.

For a mere $120, Microsoft has manage to take over one more room of your home. In 10 years the XBox will be your cable box, your video-on-demand server, your DVD player, your hard drive TV recorder, your telephone server, and your email server. Microsoft is taking the hit on the hardware costs in order to make sure that they are positioned to be THE dominant piece of communications hardware in homes everywhere. You’ll be paying them $150 a month for the rest of your lives. Pretty smart if you ask me.