Does MS lose money off of each 360 being sold?

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Shinobi120

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#1 Shinobi120
Member since 2004 • 5728 Posts

I'm wondering what your opinions are. Does MS lose money off of each Arcade & Elite sold? There are people saying that MS takes a hit off of each 360 being sold, & said that if Microsoft drops the price they'd be selling at a huge loss, while sony has 100 dollars more room to maneuver.

Can someone explain? Sorry if this doesn't belong here.

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The_Game21x

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#2 The_Game21x
Member since 2005 • 26440 Posts

No. Microsoft makes a profit off of every 360 sold.

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Kahuna_1

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#3 Kahuna_1
Member since 2006 • 7948 Posts

Hahaha, that cheap ass hardware...of course not. The system has also been out for 4+ years.

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T-Aldous

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#4 T-Aldous
Member since 2006 • 1244 Posts

I do not know if they do for sure or not. But, they are alot closer than Sony is, they are still taking a pounding.

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CDUB316

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#5 CDUB316
Member since 2009 • 6589 Posts

nope, they're smarter than sony...they know how to make money and not lose it

i DO love my PS3 though...thanks for the great deal sony :)

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___gamemaster__

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#6 ___gamemaster__
Member since 2009 • 3428 Posts

i think yes in each unit sold. but on the other hand, does ms really profit with that 3 year warranty they offer? :?

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Blade8Aus

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#7 Blade8Aus
Member since 2006 • 1819 Posts

I'm pretty sure theyre losing money off each one.

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ballistic85831

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#8 ballistic85831
Member since 2004 • 25 Posts

THis the earliest i can find on what people believe the cost of the pS3 is

http://www.joystiq.com/2009/12/11/sony-still-loses-about-40-on-every-ps3-slim-sold/

hard time finding the xbox 360 but i think most people believe that it isn't losing money with each sale

edit: links

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T-Aldous

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#9 T-Aldous
Member since 2006 • 1244 Posts

THis the earliest i can find on what people believe the cost of the pS3 is

http://www.joystiq.com/2009/12/11/sony-still-loses-about-40-on-every-ps3-slim-sold/

hard time finding the xbox 360 but i think most people believe that it isn't losing money with each sale

ballistic85831
I still dont understand how they figure that Sony only loses $40.
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Blue-Sky

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#10 Blue-Sky
Member since 2005 • 10381 Posts

Microsoft reported long time ago they are making a profit on each unit sold. This is common knowlegde, so I'm actually kind of shocked to see people in this thread say other-wise. I'll upate this post with a link, if I care enough.

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nervmeister

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#11 nervmeister
Member since 2005 • 15377 Posts
There are people saying that MS takes a hit off of each 360 being sold,garland51
Who are these people exactly?
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wooooode

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#12 wooooode
Member since 2002 • 16666 Posts
If you count the replacements they might, but they do cost less to make than they are sold for.
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themyth01

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#13 themyth01
Member since 2003 • 13924 Posts
Hard to tell. I know they make a profit on their xbox division though.
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Shinobi120

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#14 Shinobi120
Member since 2004 • 5728 Posts

[QUOTE="garland51"]There are people saying that MS takes a hit off of each 360 being sold,nervmeister
Who are these people exactly?

GameFAQ's posters on the PS3 messageboards.

Link.

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PtothaWHAT

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#15 PtothaWHAT
Member since 2009 • 411 Posts

Sounds like you got your info from some PS3 trolls.

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shinrabanshou

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#16 shinrabanshou
Member since 2009 • 8458 Posts

I'm wondering what your opinions are. Does MS lose money off of each Arcade & Elite sold? There are people saying that MS takes a hit off of each 360 being sold, & said that if Microsoft drops the price they'd be selling at a huge loss, while sony has 100 dollars more room to maneuver.

Can someone explain? Sorry if this doesn't belong here.

garland51

In the time that I've been on this board, which granted isn't huge, I don't think I've seen a single person say that... :?

In fact I've seen the direct opposite said more than a few times, which is more akin to the reality of the situation, although still probably inaccurate.

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themerlin

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#17 themerlin
Member since 2006 • 481 Posts

Microsoft started making a profit with the Xbox 360 hardware in Nov 2006. Although it was a tiny profit by now they are probably getting a bigger profit.

http://www.techspot.com/news/23612-microsoft-makes-tiny-profit-on-xbox-360-hardware.html

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LOXO7

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#19 LOXO7
Member since 2008 • 5595 Posts

i think yes in each unit sold. but on the other hand, does ms really profit with that 3 year warranty they offer? :?

___gamemaster__

Well, MS hopes that it becomes a selling point for people. If they reduced the time limit on it perhaps they would get less consoles sold too? And buying a whole new console is much better for MS than for them to fix one.

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XboximusPrime

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#21 XboximusPrime
Member since 2009 • 5405 Posts

[QUOTE="ballistic85831"]

THis the earliest i can find on what people believe the cost of the pS3 is

http://www.joystiq.com/2009/12/11/sony-still-loses-about-40-on-every-ps3-slim-sold/

hard time finding the xbox 360 but i think most people believe that it isn't losing money with each sale

T-Aldous

I still dont understand how they figure that Sony only loses $40.

SONY is Close to the break even point now that the Slim is out,

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BlancoBX

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#22 BlancoBX
Member since 2009 • 894 Posts

nope, they're smarter than sony...they know how to make money and not lose it

i DO love my PS3 though...thanks for the great deal sony :)

CDUB316

yea by putting out a console they knew would break down and continuously disrespecting their customers with inferior products...

but I do have a 360 and I like it just fine (microsoft as a whole on the other hand I hate)

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T-Aldous

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#23 T-Aldous
Member since 2006 • 1244 Posts

[QUOTE="T-Aldous"][QUOTE="ballistic85831"]

THis the earliest i can find on what people believe the cost of the pS3 is

http://www.joystiq.com/2009/12/11/sony-still-loses-about-40-on-every-ps3-slim-sold/

hard time finding the xbox 360 but i think most people believe that it isn't losing money with each sale

XboximusPrime

I still dont understand how they figure that Sony only loses $40.

SONY is Close to the break even point now that the Slim is out,

No they are not close. If each unit cost them $340 to make that is not close. They do NOT sell them to stores for $299, that what the stores sell them to customers for. Sony probably sell each PS3 to stores for around $225 to $250, that is still losing about $100 on each.
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XboximusPrime

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#24 XboximusPrime
Member since 2009 • 5405 Posts

[QUOTE="XboximusPrime"]

[QUOTE="T-Aldous"]I still dont understand how they figure that Sony only loses $40.T-Aldous

SONY is Close to the break even point now that the Slim is out,

No they are not close. If each unit cost them $340 to make that is not close. They do NOT sell them to stores for $299, that what the stores sell them to customers for. Sony probably sell each PS3 to stores for around $225 to $250, that is still losing about $100 on each.

do you have a link to back up your claims? one that shows the Current, as to right now after the slim is out, cost of Production for PS3?

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shinrabanshou

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#25 shinrabanshou
Member since 2009 • 8458 Posts

[QUOTE="XboximusPrime"]

[QUOTE="T-Aldous"]I still dont understand how they figure that Sony only loses $40.T-Aldous

SONY is Close to the break even point now that the Slim is out,

No they are not close. If each unit cost them $340 to make that is not close. They do NOT sell them to stores for $299, that what the stores sell them to customers for. Sony probably sell each PS3 to stores for around $225 to $250, that is still losing about $100 on each.

Depends on where its being sold. If I recall correctly the RRP is 299 Euro and 250 GBP, or roughly US$425 and $400 respectively.

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todd2r

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#26 todd2r
Member since 2009 • 2615 Posts

they definately are turning a profit. and thats why they can afford to drop the price soon if sony keeps catching up. 149.99 arcade coming soon. 249.99 elite coming soon

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BlancoBX

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#27 BlancoBX
Member since 2009 • 894 Posts

At least they sony didnt just rush the ps3 out into the market knowing that the blu ray drive or something would inevitably fail, or only allow you to use one of their branded hard drives or wifi adapters...i mean really they dont turn a profit on the consoles, how can anyone use that as a negative point towards sony? they put out a superior piece of hardware and sold it at a loss, I think thats commendable (even if the only reason was to win the format war with hd-dvd)

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delta3074

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#28 delta3074
Member since 2007 • 20003 Posts
the xbox 360 has been making profit since the beginning of 2008 http://www.joystiq.com/2008/01/24/the-xbox-turns-a-profit/ this is a legitimate source, not some Ps3 fanboys on a forum
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asdasdrgr

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#29 asdasdrgr
Member since 2010 • 489 Posts

I'm wondering what your opinions are. Does MS lose money off of each Arcade & Elite sold? There are people saying that MS takes a hit off of each 360 being sold, & said that if Microsoft drops the price they'd be selling at a huge loss, while sony has 100 dollars more room to maneuver.

Can someone explain? Sorry if this doesn't belong here.

garland51
There was something stating that they actually lost money,because of the failure rate,technical issues and 3 year guarantee.
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delta3074

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#30 delta3074
Member since 2007 • 20003 Posts
[QUOTE="garland51"]

I'm wondering what your opinions are. Does MS lose money off of each Arcade & Elite sold? There are people saying that MS takes a hit off of each 360 being sold, & said that if Microsoft drops the price they'd be selling at a huge loss, while sony has 100 dollars more room to maneuver.

Can someone explain? Sorry if this doesn't belong here.

asdasdrgr
There was something stating that they actually lost money,because of the failure rate,technical issues and 3 year guarantee.

no,no,no, the 360 has been making profit since jan 2008 http://www.joystiq.com/2008/01/24/the-xbox-turns-a-profit/ i aklready posted this and i am amazed at how many of you blatantly ignored the link i posted, microsofts gaming division has been profitable for some time now, and at one point MS was making 70 dillars from ever 360 pro sold
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monson21502

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#31 monson21502
Member since 2009 • 8230 Posts
[QUOTE="LOXO7"]

[QUOTE="___gamemaster__"]

i think yes in each unit sold. but on the other hand, does ms really profit with that 3 year warranty they offer? :?

Well, MS hopes that it becomes a selling point for people. If they reduced the time limit on it perhaps they would get less consoles sold too? And buying a whole new console is much better for MS than for them to fix one.

if i had to rebuy all systems again with what i know now. 360 would be my first choice. my 60 gig ps3 died. and sony wanted 170 bucks to fix it. my 360 died and it costed me 3 bucks.
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Tyrant156

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#32 Tyrant156
Member since 2004 • 737 Posts
[QUOTE="monson21502"][QUOTE="LOXO7"]

[QUOTE="___gamemaster__"]

i think yes in each unit sold. but on the other hand, does ms really profit with that 3 year warranty they offer? :?

Well, MS hopes that it becomes a selling point for people. If they reduced the time limit on it perhaps they would get less consoles sold too? And buying a whole new console is much better for MS than for them to fix one.

if i had to rebuy all systems again with what i know now. 360 would be my first choice. my 60 gig ps3 died. and sony wanted 170 bucks to fix it. my 360 died and it costed me 3 bucks.

With luck like that I would think twice about doing it all over again. Both your systems died?
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doobie1975

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#33 doobie1975
Member since 2003 • 2806 Posts

im guessing you heard that off miss information. she's always talking **** i wouldn't trust her.

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Tessellation

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#34 Tessellation
Member since 2009 • 9297 Posts
Its microsoft xbox 360,no sony ps3.
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SolidTy

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#35 SolidTy
Member since 2005 • 49991 Posts

I think I read 2 years ago they were making $75 on each Xbox 360 sold, even more money was made for PRO's/Elites.

I would imagine that two years later, they are raking in over $100-125 per Arcade/Core console, and more for the Elite.

The real profit maker is the Wii, my goodness.

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WilliamRLBaker

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#36 WilliamRLBaker
Member since 2006 • 28915 Posts

[QUOTE="CDUB316"]

nope, they're smarter than sony...they know how to make money and not lose it

i DO love my PS3 though...thanks for the great deal sony :)

BlancoBX

yea by putting out a console they knew would break down and continuously disrespecting their customers with inferior products...

but I do have a 360 and I like it just fine (microsoft as a whole on the other hand I hate)

lol yeah inferior products all the time yet their keyboard and mice work great, their OS is number 1..ect your the age old but im not a fanboy cause i got a *insert system here* type.
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WilliamRLBaker

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#37 WilliamRLBaker
Member since 2006 • 28915 Posts

At least they sony didnt just rush the ps3 out into the market knowing that the blu ray drive or something would inevitably fail, or only allow you to use one of their branded hard drives or wifi adapters...i mean really they dont turn a profit on the consoles, how can anyone use that as a negative point towards sony? they put out a superior piece of hardware and sold it at a loss, I think thats commendable (even if the only reason was to win the format war with hd-dvd)

BlancoBX
lol way to talk about something that has nothing to do with the topic at hand...
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#38 Stevo_the_gamer  Moderator  Online
Member since 2004 • 50174 Posts
Microsoft broke even with the Xbox 360 in about a year or less, they've been making money ever since.
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T-Aldous

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#39 T-Aldous
Member since 2006 • 1244 Posts

[QUOTE="T-Aldous"][QUOTE="XboximusPrime"]

SONY is Close to the break even point now that the Slim is out,

XboximusPrime

No they are not close. If each unit cost them $340 to make that is not close. They do NOT sell them to stores for $299, that what the stores sell them to customers for. Sony probably sell each PS3 to stores for around $225 to $250, that is still losing about $100 on each.

do you have a link to back up your claims? one that shows the Current, as to right now after the slim is out, cost of Production for PS3?

Someone already posted a link to the production costs of the PS3 on page 1 of this thread. It shows the price of the PS3 is almost $340.
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Stevo_the_gamer

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#40 Stevo_the_gamer  Moderator  Online
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no,no,no, the 360 has been making profit since jan 2008 http://www.joystiq.com/2008/01/24/the-xbox-turns-a-profit/ i aklready posted this and i am amazed at how many of you blatantly ignored the link i posted, microsofts gaming division has been profitable for some time now, and at one point MS was making 70 dillars from ever 360 pro solddelta3074

I would give this link a look over, mate.

http://www.xbitlabs.com/news/multimedia/display/20061120132150.html

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Wings_008

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#41 Wings_008
Member since 2008 • 3813 Posts
no they don't, on the other hand Sont loses 40$ on every PS3 sold
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doobie1975

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#42 doobie1975
Member since 2003 • 2806 Posts

its also not as important for MS as they have a very profitable revenue stream from live gold fee's. something i'm sure Sony wishes they had

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skektek

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#43 skektek
Member since 2004 • 6530 Posts

[QUOTE="asdasdrgr"][QUOTE="garland51"]

I'm wondering what your opinions are. Does MS lose money off of each Arcade & Elite sold? There are people saying that MS takes a hit off of each 360 being sold, & said that if Microsoft drops the price they'd be selling at a huge loss, while sony has 100 dollars more room to maneuver.

Can someone explain? Sorry if this doesn't belong here.

delta3074

There was something stating that they actually lost money,because of the failure rate,technical issues and 3 year guarantee.

no,no,no, the 360 has been making profit since jan 2008 http://www.joystiq.com/2008/01/24/the-xbox-turns-a-profit/ i aklready posted this and i am amazed at how many of you blatantly ignored the link i posted, microsofts gaming division has been profitable for some time now, and at one point MS was making 70 dillars from ever 360 pro sold

asdasdrgr was speaking over the lifetime of the 360, where the division is still in the red. You can read MS's SEC filings here.

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deactivated-5dd711115e664

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#44 deactivated-5dd711115e664
Member since 2005 • 8956 Posts

I'm wondering what your opinions are. Does MS lose money off of each Arcade & Elite sold? There are people saying that MS takes a hit off of each 360 being sold, & said that if Microsoft drops the price they'd be selling at a huge loss, while sony has 100 dollars more room to maneuver.

Can someone explain? Sorry if this doesn't belong here.

garland51

It is a well known FACT that MS now makes a profit off of every console sold. They launched at a loss per console, but once they cleared up the RROD issue (and hardware prices always plummet) the console becomes profitable.

The Wii has alway sold at a nice profit for Nintendo.

The PS3 launched at a HUGE loss and still loses money per console sold, but nowhere near as much as when it launched.

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asdasdrgr

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#45 asdasdrgr
Member since 2010 • 489 Posts
OS is number 1WilliamRLBaker
This is another classic example of Sales=/=quality
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delta3074

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#46 delta3074
Member since 2007 • 20003 Posts
[QUOTE="WilliamRLBaker"]OS is number 1asdasdrgr
This is another classic example of Sales=/=quality

quality is subjective, not fact, i prefer winows to any other operating system, working links uses linux 6 on there PC's, and they go down every 20 mins, and since upgreading vista to service pack 2 i have not had a single problem with my PC
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skektek

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#47 skektek
Member since 2004 • 6530 Posts

[QUOTE="asdasdrgr"][QUOTE="WilliamRLBaker"]OS is number 1delta3074
This is another classic example of Sales=/=quality

quality is subjective, not fact, i prefer winows to any other operating system, working links uses linux 6 on there PC's, and they go down every 20 mins, and since upgreading vista to service pack 2 i have not had a single problem with my PC

linux 6? What are you talking about?

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KiZZo1

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#48 KiZZo1
Member since 2007 • 3989 Posts

I wonder how the PS3 price was calculated at $340? I guess Sony's suppliers do not know what an NDA is and when a random guy writes an email to them to ask for a price quote for 1 million Cell processors, they gladly provide that ...

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ZuneHD

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#49 ZuneHD
Member since 2009 • 491 Posts

almost every fiscal quarter they pull a profit.

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delta3074

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#50 delta3074
Member since 2007 • 20003 Posts

[QUOTE="delta3074"][QUOTE="asdasdrgr"] This is another classic example of Sales=/=qualityskektek

quality is subjective, not fact, i prefer winows to any other operating system, working links uses linux 6 on there PC's, and they go down every 20 mins, and since upgreading vista to service pack 2 i have not had a single problem with my PC

linux 6? What are you talking about?

http://www.linux.com/archive/feed/59774