Xbox 360 Making a Profit on Unit Sales?

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Xbox 360 Making a Profit on Unit Sales?

November 28th, 2006, 04:24 Posted By: gunntims0103

news via 1up

Are parts for the system finally cheaper than it sells for? Analyst says 'yes.'

Tech analyst firm iSuppli issued a report where they speculate that Microsoft's Xbox 360 might, just a year after release, cost less to produce than the unit retails for, according to GameIndustry.

The HDD-equipped Xbox 360 has a manufacturing and materials total of US $323.30, based on updated estimate using costs in the fourth quarter of 2006," said the report. "This total is US $75.70 less than the US $399 suggested retail price of the Xbox 360.

The Core pack isn't turning a profit, yet. If just a year after launch when sales for the system have remained relatively sluggish, Microsoft's production costs are lower than their retail price -- that puts them in an enviable position (considering iSuppli guessed that Sony was losing $300 per PS3) going into next year -- which could be one of the best in recent memory in terms of software (both industry-wide and for Microsoft).

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