Xbox 360 costs $715 to make ?

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: Joystiq.com

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.

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...

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

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.