Jump to content
N-Europe

XBox 360 Price Cut - I wonder if this will influence the Wii Price...


ghost_zero

Recommended Posts

In Euroland:

 

Arcade (no HDD, wireless controller, composite, 5 XLA games): €199.95

Premium (20 GB HDD, component, demos/vids/1 XLA game): €269.95

Elite (120 GB HDD, HDMI, black): €369.95

 

The real worthwile packages only got a €30 cut :hmm: Better than nothing still!

 

From what I know the NEW Premium models have a HDMI port too (don't know if the cable is included though).

Link to comment
Share on other sites

  • Replies 66
  • Created
  • Last Reply

Top Posters In This Topic

My bad, they were losing money for the first year, then started to turn a profit on hardware in November 2006.

 

Source: http://www.techspot.com/news/23612-microsoft-makes-tiny-profit-on-xbox-360-hardware.html

 

They probably are making a profit still, they've had another hardware revision since then and have a 3rd lined up for this summer. Each time they are cutting the manufacturing cost and increasing the stability of the console. I've got to wonder how cheap the 360 will get when they have the CPU and GPU on a single chip? £100?

Link to comment
Share on other sites

I'm pretty sure I remember reading they were losing something like 100$ or 150$ per console, don't remember when that was though, but I think it was at launch. With the extended warranties, refunds and revisions though it cost them. They only started turning profit very recently.

I think they started making a profit in 2006. Even back then they had a ratio of 5 games sold per console.

 

Now it's 7 games per console (i.e. the average Xbox 360 owner will have 7 games for it). For the Wii and PS3 it's only 3 games per console, so Microsoft are definitely making the most profits from their games.

Link to comment
Share on other sites

From what I know the NEW Premium models have a HDMI port too (don't know if the cable is included though).
All the models have an HDMI port, I meant to say which cable was included in the package.

 

Also, Dilli's right, Microsoft started making profit back in late 2006 on the 360s. Especially since they reduced the chip's sizes the 360 is profitable. Also, the attach rates for Wii and PS3 are more like 4.6 games per console.

Link to comment
Share on other sites

I think the confusion with profit here, is based over time. Owing to what you guys are saying they made a profit in 2006. But I think over the time between Xbox launch and now, they have only recently started to re-coop the money they lost in the early days.

Link to comment
Share on other sites

I think they started making a profit in 2006. Even back then they had a ratio of 5 games sold per console.

 

Now it's 7 games per console (i.e. the average Xbox 360 owner will have 7 games for it). For the Wii and PS3 it's only 3 games per console, so Microsoft are definitely making the most profits from their games.

 

I thought he was referring to the console being a sole loss leader itself? As in the actual console selling for less than it's production cost, as did the PS3 on launch, but the Wii did not. The games are where Microsoft make the profit, which they get by selling the console cheaper, thus the loss leads to profits.

Link to comment
Share on other sites

Oh okay. In that case, I don't think Xbox 360 makes a profit from its hardware sales. Even if it is cheaper to make one now, a 360 originally had a loss of £150.

 

It can't be that much of a difference today. Maybe they only just break even?

Link to comment
Share on other sites

Do people ever click links :p

 

At the end of 2006 Microsoft were taking $75.70 (minus the cost of shipping to the retailers) on every 360 sold.

 

That was at a retail price of $399. It's pretty safe to say that after yet another hardware revision they will be making comfortable profit on a £200 retail price, even after incurring the costs of shipping the consoles to Europe.

 

Regardless, would they actually be desperate enough to increase hardware sales that they would consider turning profit in to loss? They aren't exactly doing badly in the UK (mainland Europe is, of course, a different story).

Link to comment
Share on other sites

It can't be that much of a difference today. Maybe they only just break even?
It's a huge difference. The cost of a console reduces much over time as the efficiency in building the new hardware rises through experience and parts get cheaper. In the case of the 360 they managed to revise the hardware, probably leading to even lower costs. Even with these lower prices, they will probably make profit still.
Link to comment
Share on other sites


×
×
  • Create New...