Does MS lose money off of each 360 being sold?

[QUOTE="skektek"]

[QUOTE="delta3074"]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 PCdelta3074

linux 6? What are you talking about?

Crossover is a Win32 application capability layer, not an OS. What applications are you running that you require Win32 and Linux?

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.T-Aldous

T-Aldous,

You're off in your PS3 retail estimation.

I know a guy who fairly recently closed his video game shop, and he told me the margin on PS3's (fat/phat version) was razor thin...like 2 or 3 or so dollars because of shipping. He told me that sometimes when his inventory was running low, it was beneficial for him to go to Best Buy and buy PS3's straight out because then he would turn around and sell and/or package each system with games, which in turn was profitable because the games themselves carried margin.

I'm very certain the Slim carries the same margin dynamic, and that's why you hardly ever see a PS3 Slim selling at a retail store for less than the MSRP ($299.99)

Also, I used to sell Dreamcasts and PS1's back in the day, and the margin was razor thin on those too.

Basically, Sony's pretty "tight wad'ish" towards their retailing of PS3's, mostly because I think they have to be.

Microsoft lose money? Lol, I think Microsoft out of all companies know how to make a profit.

I don't doubt that XBOX 360's make profit, but as to the amount they make becomes a very cloudy issue because of XBOX 360 repairs/replacements, and then how that is tabulated.

Basically every XBOX 360 that needs to be "fixed" by Microsoft, that incurs a cost to the average overall cost of an XBOX 360. Since XBOX 360 went through a 3 year period of heavy defect rates, that cost is significant and still incurs cost now and towards the forseeable future.

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

Microsoft has been making profits off the XBox 360 for almost 2 years now.

This is how much they were losing back in 2005 --->http://www.gamespot.com/news/6140383.html

This is how much they have been making --->http://www.techspot.com/news/23612-microsoft-makes-tiny-profit-on-xbox-360-hardware.html

That was back in 2006. They are probably making $25 - $30 on every Elite sold. Not sure about the Arcade though. They are either breaking even or making about $5. By the middle of this year the profits will probably go up.

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.

"We're making money, not much money but we are making money," said Yoshihiro Maruyama, executive officer and general manager of the Xbox division of Microsoft Co. Ltd., Microsoft's Japan division, in an interview with IDG News Service in September this year.

i don't know what this year is lol

I believe Sony were the ones who stated it cost $340 to make an PS3 Slim. They also reported that they were losing money on every PS3 Slim made. They said this last year. They said that sometime this year it would eventually become profitable in some regions. Probably Japan first I would guess. Anyway, the Xbox 360 has been profitable for awhile now, that why every quarter Microsoft reports shows overall profits. Sony has lost over $1 billion in with the PS3 in 2008 and 2009. I don't know how they are able to stay in business. I know they took out a couple of loans back in 2008 though.

I don't doubt that XBOX 360's make profit, but as to the amount they make becomes a very cloudy issue because of XBOX 360 repairs/replacements, and then how that is tabulated.

Basically every XBOX 360 that needs to be "fixed" by Microsoft, that incurs a cost to the average overall cost of an XBOX 360. Since XBOX 360 went through a 3 year period of heavy defect rates, that cost is significant and still incurs cost now and towards the forseeable future.

Persistantthug

[QUOTE="Persistantthug"]

I don't doubt that XBOX 360's make profit, but as to the amount they make becomes a very cloudy issue because of XBOX 360 repairs/replacements, and then how that is tabulated.

Basically every XBOX 360 that needs to be "fixed" by Microsoft, that incurs a cost to the average overall cost of an XBOX 360. Since XBOX 360 went through a 3 year period of heavy defect rates, that cost is significant and still incurs cost now and towards the forseeable future.

shinrabanshou

I'm very sure that the 1 billion they "put aside" as long been overun. They didn't expect for that problem to keep going, and going, and going, like it has. Not only did those defects remain persisting for more than 3 years, but many of those individual problems happened multiple times.

The problem is, Microsoft won't talk about it anymore...so, I'm certain it isn't good.