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.'”

If anyone has the money to blow, it's Billsoft. And if true, how long can the company stay in the red?

im sorry, but if you think that microsoft is really loosing 315$ on every xbox it is selling, you are smoking something crazy. the ibm chips they used are nothing special, the harddrive is a 20 gb, if you think bill would be stupid enough to release a console and loose over 1 billion dollars on it (315$ x 3mil boxes sold = 945 million) AND continue to loose money, you need to look at their company. Anyone from business knows that you would never release a product where you loose almost as much as your MSRP, no matter how much money microsoft has, it would be a stupid business choice. I HIGHLY doubt this figure that their xbox's are costing them 715$. Agreed it is not uncommon for a console to loose money, but twice the MSRP PER UNIT is retarded. and if you beleive that figure, you are retarded too. i would guess and say they are probably loosing about 40-100$ an xbox360, which would not be uncommon, taking their total cost from 440$ to 500$.

if it costs them about 700$usd and they are selling it for 400$usd what do they get? why would anyone do that? that is just completly D.U.M.B really....if that is true i am going to kill myself... hahhahahah

Lol...al could be quite truth, but they want to earn money with their games. They are very expensive (65-70 euros here in Holland). That is quite much! I have nothing against it, but as soon as something hackable will come, I'm the first one who will get it :D