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Reports Suggest $120+ Loss Per 360 For MS News
Jon Wilcox
23/11/2005
Cost breakdown of the components in the next-gen machine estimate that Microsoft will continue to make loss on hardware...
Weâre now over twenty-fours into the HD/Next-Gen era (if youâre reading this in North America that is) and already thereâs reports that Microsoft are continuing to lose money on the manufacturing costs of the Xbox 360. In an article for Business Week analysts at iSuppli have suggested that Microsoft may be making a loss of around $126 per Xbox 360 unit (the premium not the Core System.)
iSuppli estimated that the various components that make up the Xbox 360 cost around $470 pre-assembly (compared to the $400 RRP of the full pack) with further items such as power cables and the all important controller adding a further $55 to the proceedings â“ assuming that Microsoft gets a discount on many of the components â“ making the final cost of manufacturing the Xbox 360 premium pack approximately $520 per unit.
One analyst for iSuppli estimated that as the life-cycle of the console continues, costs could lower by between 20% and 25% thanks to manufacturing efficiency and production yields.
Though yet to be confirmed a figure of $600 has been suggested by some analysts for the component costs of the PlayStation3, though this hasnât been confirmed by Sony (along with a retail price for the next-gen console.)
Weâll have more news shortlyâ¦
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