gunntims0103
November 28th, 2006, 03:24
news via 1up (http://www.1up.com/do/newsStory?cId=3155499)
Are parts for the system finally cheaper than it sells for? Analyst says 'yes.'
Tech analyst firm iSuppli issued a report where they speculate that Microsoft's Xbox 360 might, just a year after release, cost less to produce than the unit retails for, according to GameIndustry.
The HDD-equipped Xbox 360 has a manufacturing and materials total of US $323.30, based on updated estimate using costs in the fourth quarter of 2006," said the report. "This total is US $75.70 less than the US $399 suggested retail price of the Xbox 360.
The Core pack isn't turning a profit, yet. If just a year after launch when sales for the system have remained relatively sluggish, Microsoft's production costs are lower than their retail price -- that puts them in an enviable position (considering iSuppli guessed that Sony was losing $300 per PS3) going into next year -- which could be one of the best in recent memory in terms of software (both industry-wide and for Microsoft).
Are parts for the system finally cheaper than it sells for? Analyst says 'yes.'
Tech analyst firm iSuppli issued a report where they speculate that Microsoft's Xbox 360 might, just a year after release, cost less to produce than the unit retails for, according to GameIndustry.
The HDD-equipped Xbox 360 has a manufacturing and materials total of US $323.30, based on updated estimate using costs in the fourth quarter of 2006," said the report. "This total is US $75.70 less than the US $399 suggested retail price of the Xbox 360.
The Core pack isn't turning a profit, yet. If just a year after launch when sales for the system have remained relatively sluggish, Microsoft's production costs are lower than their retail price -- that puts them in an enviable position (considering iSuppli guessed that Sony was losing $300 per PS3) going into next year -- which could be one of the best in recent memory in terms of software (both industry-wide and for Microsoft).