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Microsoft loses over $150 on Each XBOX 360 it Sales!

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  • Microsoft loses over $150 on Each XBOX 360 it Sales!

    Doesn't really make much sense to me; but I'm sure they have so much money that it doesn't matter.

    http://www.orlandosentinel.com/news/...news-headlines
    Tanner Johnson - Owner
    twenty53 Photography

  • #2
    Thats the usual thing for every console and many other products...Printers come to mind.

    They make their money off games and other stuff you buy for the console.

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    • #3
      Interesting strategy. Not what I'd have done though. I think Sony did that with the PSP, its cheap to buy, but games, movies and memory cost heaps.

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      • #4
        Originally posted by Genessee
        Thats the usual thing for every console and many other products...Printers come to mind.

        They make their money off games and other stuff you buy for the console.
        Good theory, and also highly likely. Since you mention printers, just take Lexmark as an example: They sell their printers for around 30, and then sell the cartridges for 28-35. That shows where the money often lies: Not the product itself, but supplies and other additions for it.

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        • #5
          I think nobody wants to buy XBOX 360. (and you may want to know why i am inactive here for too long, too busy to track hurricanes, busy with gaming.)
          Irfan Faiz Nazerollnizam. Computer geek and gamer

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          • #6
            Video Games = Worthless.. you spend all that time playing it and not a penny richer..

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            • #7
              Originally posted by DeltaASA16
              Video Games = Worthless.. you spend all that time playing it and not a penny richer..
              yeah but isn't it the same with most fun things in life!?
              greetings,
              Philip
              ______________

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              • #8
                Originally posted by DAL767-400ER
                Good theory, and also highly likely. Since you mention printers, just take Lexmark as an example: They sell their printers for around 30, and then sell the cartridges for 28-35. That shows where the money often lies: Not the product itself, but supplies and other additions for it.
                I have an Epson R200 printer, it takes six ink carts. The total for all that ink is around $120. I just buy the printers when they are on sale. Every few months you can get the printer for $100 with a $40 mail in rebate. So should the rebate come though, you get all that ink for $60 (Even $100 is a good deal ;P). They seem to be full carts as well, not half full trail things.

                There's a specific name for this type of marketing, but I can't remember it now. I'll have to do some google work.

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                • #9
                  Originally posted by Genessee
                  I have an Epson R200 printer, it takes six ink carts. The total for all that ink is around $120. I just buy the printers when they are on sale. Every few months you can get the printer for $100 with a $40 mail in rebate. So should the rebate come though, you get all that ink for $60 (Even $100 is a good deal ;P). They seem to be full carts as well, not half full trail things.

                  There's a specific name for this type of marketing, but I can't remember it now. I'll have to do some google work.
                  Lowball Marketing. Used very often by car salesmen. They quote you a low price for the car itself, but then get you to buy certain more expensive addons. I guess it's a similar thing here.
                  "The Director also sets the record straight on what would happen if oxygen masks were to drop from the ceiling: The passengers freak out with abandon, instead of continuing to chat amiably, as though lunch were being served, like they do on those in-flight safety videos."

                  -- The LA Times, in a review of 'Flightplan'

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                  • #10
                    well considering the 360 only cost $400 in canada too (that is canadian) there is no reason why not to sace $100+ and go over the boader and get one cheaper!

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                    • #11
                      Originally posted by expoITHscohen
                      well considering the 360 only cost $400 in canada too (that is canadian) there is no reason why not to sace $100+ and go over the boader and get one cheaper!
                      But good luck finding one in a store!
                      Follow me on Twitter! www.twitter.com/flyingphotog

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                      • #12
                        Microsoft is doing the same thing boeing and airbus do. The first few products they sell, they are losing money. Aircraft manufacturers have to sell so many planes, say 100 (that's just a guess) before they start making a product. Microsoft is doing the same thing. Once they sell enough units to cover research and development, they start making a profit on every unit they sell. Thats also about the time they start dropping prices on them.

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                        • #13
                          That's not how Microsoft is doing it though. They won't break even if they sale a certain number of machines. They lose that on the parts they put into each 360; not what they've put in the R&D. They'll make money on the games and other accessories.
                          Tanner Johnson - Owner
                          twenty53 Photography

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                          • #14
                            yeah, the parts they put in now. Don't forget though, those same parts will be a lot cheaper in 6 months. Technology prices drop like crazy once they become massed produced. Look at cameras. 5 megapixel cameras are 200 bucks. A year and a half ago I bought a 3 megapixel camera for 400 bucks. Once the pieces for the xbox 360 have been massed produced for a few months, the price for those pieces will drop. Make no mistake about it, microsoft isn't going to go out and lose money on something like the 360 in the long term.

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                            • #15
                              You paid $400 for a 3 MP camera less than two years ago?
                              Tanner Johnson - Owner
                              twenty53 Photography

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