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Microsoft making tiny profit on Xbox One hardware sales
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The following comments relate to this news article:

Microsoft making tiny profit on Xbox One hardware sales

article published on 26 November, 2013

According to research firm IHS, Microsoft, just like its rival Sony and its Playstation 4, is making a very tiny profit on each unit sold of the new Xbox One. The Xbox One, which costs $499 to consumers, costs $471 to build, not including R&D and advertising costs which could certainly add up to $20 or more per unit. Sony, which sells its PS4 for $399, spends $381 to build the console. ... [ read the full article ]

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Posted Message
dEwMe
Senior Member
_ 		27. November 2013 @ 08:41 _ Link to this message    Send private message to this user   
This would only be true if the manufacturers were getting 100% of the list price paid by consumers. I gotta assume they sell to a Best Buy or any other merchant for much less so they can get their cut of the sale. That said I bet they are both selling at a loss.
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Just my $0.02,

dEwMe
A5J4DX
Senior Member
_ 		27. November 2013 @ 16:19 _ Link to this message    Send private message to this user   
that isnt good :o but its early days as well since its a new generation of consoles
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Bozobub
Senior Member
_ 		27. November 2013 @ 16:39 _ Link to this message    Send private message to this user   
Either way, this is actually close to break-even than usual for a console at launch. Remember, the actual hardware is a loss-leader for SOFTWARE (and peripheral) sales.
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FreqNasty
Newbie
_ 		29. November 2013 @ 06:53 _ Link to this message    Send private message to this user   
They should have used the $75 that kinect cost, on the GPU/CPU instead. More 1080p/60fps
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