Microsoft losing $126 per Xbox 360 unit

[soxboy7]

Re: Microsoft losing $126 per Xbox 360 unit

Wow, well I'll admit it, I had no idea that Microsoft was losing money on these systems. I assumed they were making around $100 on each one, not losing $100. You learn something new everyday

[nemesis04]

Re: Microsoft losing $126 per Xbox 360 unit

I would guess MS sells the systems to retailers for right around the $399 price. .

Ummm.. NO!

[dagger55]

Re: Microsoft losing $126 per Xbox 360 unit

Ummm.. NO!

actually im pretty sure retailers make close to zero profit off of consoles.

[SPTO]

Re: Microsoft losing $126 per Xbox 360 unit

But it doesn't matter how much money Microsoft loses, they can afford to lose that much.

You are probably right HOWEVA if MS doesn't win the console war this generation then I think it'll probably mean the end of the Xbox. There's only so much losses a company can take even if it's just a tiny dent in the MS pocketbook.

The one thing that MAY keep Xbox going for years and years to come is Bill Gates as i've read that he's determined to conquer the video game world the same way he has with PC operating systems.

[nemesis04]

Re: Microsoft losing $126 per Xbox 360 unit

actually im pretty sure retailers make close to zero profit off of consoles.

They make about between ten and fifteen %.

[dagger55]

Re: Microsoft losing $126 per Xbox 360 unit

They make about between ten and fifteen %.

absolutely no way any retailer makes $40 a pop.....

[nemesis04]

Re: Microsoft losing $126 per Xbox 360 unit

absolutely no way any retailer makes $40 a pop.....

You would be suprised my friend!

[Flawless]

Re: Microsoft losing $126 per Xbox 360 unit

You are probably right HOWEVA if MS doesn't win the console war this generation then I think it'll probably mean the end of the Xbox. There's only so much losses a company can take even if it's just a tiny dent in the MS pocketbook.

The one thing that MAY keep Xbox going for years and years to come is Bill Gates as i've read that he's determined to conquer the video game world the same way he has with PC operating systems.

Microsoft in video game market for long haul: Gates

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2005-11-21T214730Z_01_ROB178351_RTRUKOC_0_US-MEDIA-XBOX-GATES.xml

[CMH]

Re: Microsoft losing $126 per Xbox 360 unit

Places like GameStop buy games at around $45 and then sell those same games for $49.99 plus tax. That's about 9% profit.

If the same logic is being used for the 360 then stores are making about $35 a system.

So the $40 isn't too far off, really.

[JRod]

Re: Microsoft losing $126 per Xbox 360 unit

Places like GameStop buy games at around $45 and then sell those same games for $49.99 plus tax. That's about 9% profit.

If the same logic is being used for the 360 then stores are making about $35 a system.

So the $40 isn't too far off, really.

Ya but where they make real green is used games. Buy a newish game for $15 and sell it for $35 to $45. That's why some stores put the focus on used games.

[CMH]

Re: Microsoft losing $126 per Xbox 360 unit

Ya but where they make real green is used games. Buy a newish game for $15 and sell it for $35 to $45. That's why some stores put the focus on used games.

Oh, yea, definitely.

GameStop and EBGames live on used games.

[KillRoy]

Re: Microsoft losing $126 per Xbox 360 unit

Microsoft in video game market for long haul: Gates

http://today.reuters.com/news/newsAr...XBOX-GATES.xml

Saying you`ll do another game system is a lot different than actually doing it. I don`t see MS making another console if 360 fails. It would be like throwing millions of dollars away again and again and yet again. No one is in the business to lose money. MS will call it quits if the 360 bombs.

[p2xgamers]

Re: Microsoft losing $126 per Xbox 360 unit

Saying you`ll do another game system is a lot different than actually doing it. I don`t see MS making another console if 360 fails. It would be like throwing millions of dollars away again and again and yet again. No one is in the business to lose money. MS will call it quits if the 360 bombs.

What is your definition of "failing" though? Ending up in 3rd or having something like the first xbox? (that did great but wasnt #1)

[The C]

Re: Microsoft losing $126 per Xbox 360 unit

Why doesn't Microsoft just covertly sell some 360's on Ebay to even it out?

[CaptainZombie]

Re: Microsoft losing $126 per Xbox 360 unit

I used to work at a gamestore, EB. Any systems that are sold, retail chains don't make a dime off of systems. We would make our money by pushing warranties (which are pure profit since not everyone uses them), accessories (especially 3rd party ones had a larger markup), and games.