Keyboard and mouse - Page 3

Kosmo · 08-20-2006, 02:22 PM

I thought m$ lost money on every 360 sold? And it was a long term investment

paintballer · 08-20-2006, 04:01 PM

They lose money on each 360 that sells but they make up for it with the games.

osubuckeyes · 08-20-2006, 05:14 PM

It's not that they make up for it. But with every system games have just been creeping up higher and higher. And there is no way they lose money with every 360 sold. That's the biggest load of crap i have ever heard.

virus knight82 · 08-20-2006, 06:28 PM

they wouldnt bother making it if they where going to lose money

fuck you make it sound like ms cares for its fans lol

va1o · 08-20-2006, 06:50 PM

lol its a fact that they did lose money ... where they make it up is on games/accessorys/XBL subs/MS Points..

Same for every console

pizzaluvr · 08-20-2006, 06:52 PM

lol they lose money, but they release it knowing that in the future the prices for the hardware will go down

the ps2's now only cost like $60 to make, and sony sells for $130 = $70 profit, and consoles are still selling like mad

Rayzer88 · 08-20-2006, 07:03 PM

i thought they were making a small profit on the 360 and that they lost money on the original xbox. im sure somewhere i saw or read umm...j.allard i think saying that the next gen is when ms finally make a profit on the consoles

Daleon · 08-23-2006, 02:57 PM

Check this if you want to really know what kind of money MS makes and where it comes from. The Xbox is part of the Home Entertainment division. That division is nothing compared to their others.

http://www.microsoft.com/msft/earnin...rel_q4_06.mspx

Fourth Quarter

Home and Entertainment revenue increased primarily reflecting an increase in Xbox revenue of $503 million or 129%. Xbox revenue increased mainly due to the shipment of 1.8 million Xbox 360 consoles, which exceeded the number of first generation consoles sold in the same period of the prior year. In addition, Xbox 360 consoles sell at a higher average price than first generation consoles. In the fourth quarter of fiscal 2006, the availability of Xbox 360 consoles was no longer limited by supply constraints. Growth in revenue of $48 million or 24% from our Home Products Division, TV platform products, and PC games sales also contributed to the total Home and Entertainment revenue growth.

Home and Entertainment operating loss increased primarily as a result of a $682 million increase in cost of revenue primarily associated with the Xbox 360, partially offset by the revenue growth. Our business model anticipates that while we currently sell Xbox 360 consoles at a negative margin, product cost reductions and the future margins on sales of games and other products will enable us to achieve a positive margin over the Xbox 360 console lifecycle. The first generation Xbox consoles continue to have negative margins. Headcount-related costs increased 11% reflecting both a 19% increase in headcount and an increase in salaries and benefits for existing headcount, partially offset by a decrease in stock-based compensation expense.

DC DUO · 08-23-2006, 03:06 PM

Sorry mate i cant read all of that, yea Microsoft do loose money why do you think they're making the cpu upgrade? to cost less to make. And even though it'll go down in value the manufacturing cost will still be the same like the way the latest penium d's are about £800, but there is only about a fiver of materials in it or less.

And you cant say the game prices have been going up because the N64 games used to cost 50 quid.