Microsoft reported to lose $153 on each Xbox it sells
Published November 28th, 2005
Microsoft Corp. loses at least $153 on each Xbox video game console it sells, based on just the cost of components and assembly, iSuppli Corp. analysts said.
Parts such as processors and manufacturing cost $552.27 for every machine that retails at $399, iSuppli said. Marketing and shipping costs aren’t included in the estimates.
“As we go through the cycle, the cost of the components goes down significantly,” said Evan Wilson, an analyst at Pacific Crest Securities in Portland, Ore. Royalty fees Microsoft receives from game publishers “will grow much more rapidly when the installed base of Xboxes increases,” he said.
Related Articles
