Reality check on Xbox 360

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Analysts estimate that MS loses about $126 per box. Given Microsoft's publicly stated goal of selling 3 million units this amounts to a grand total...$378 million loss. For a company that makes about $1 billion in PROFIT (and around $4 billion gross) PER MONTH this is a drop in the bucket.

It's simply a problem of being able to manufacture a high-tech product using cutting edge components. This system has THREE custom designed dual core processors and a custom built video processor. It's not hard to imagine that this is...gasp...HARD TO BUILD. Not only that, Microsoft is attempting to launch globablly so it's entering three different markets in a month.

Microsoft would LOVE to sell double or triple the amount they have targeted. The problem is simply logistics.

Posted by: java.user   Posted on: 11/29/05 You are currently: a Guest | Members login | Terms of Use

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