Xbox 360 costs $715 to make ?

[Zeus]

Joystiq say "According to Insider Scoop, the world's largest software maker is losing upwards of $300 per console sold".


From the article: "A high ranking friend at IBM, one that worked on the Xbox 360 chip design, tipped us regarding the real expenses involved in manufacturing the Xbox 360... 'It costs Microsoft approximately $715 to make, the manufacturing costs are still too high, another reason why they’re producing relatively small quantities.'”


News Source: <a href="http://www.joystiq.com/2005/12/28/xbox-360-costs-715-to-make/" target="_blank">Joystiq.com</a>

[DToWN206@hotmai]

When the 360 first came out, I remember seeing the cost to M$ several times and it was right around $453.00/premium console.
This new price is waaaaaay too high of a cost for M$, I think it is wrong.

[DToWN]

after reading more, it sounds like it was from a reliable source, ibm employee or something. that just sounds like a HUGE # for M$ to lose, but I guess the $100 network adapter along with $60 games sorta make up for it...

[Radiozo]

Yes. That is exactly why the games are more expensive. They have make up for the loss on the consoles.

[cellshaded]

Well, actually console makers, expect to win money from it's games, not for the console, since each time a game is maked, they charge a fee for that game, though.
So if the price actual price of 360 is 715, then i expect the ps3 to be arround 1,200.