anyone have a guestimate when xbox will hit the $99 mark?

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digitalsm

Diamond Member
Jul 11, 2003
5,253
0
0
Originally posted by: mugs
Originally posted by: bluewall21
Microsoft sell a product for $99? Crazy. I think they will stop production before it hits that low. They are already losing money on every Xbox they sell (as in their selling price is lower than their production price).

Microsoft has lost billions on their X-Box division. It's not uncommon to sell a system for less than it costs to produce, then make up the difference by selling games, but Microsoft hasn't made up the difference.

But they are in a position to more than make up the difference next go around(Xbox 2).
 

Wingznut

Elite Member
Dec 28, 1999
16,968
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0
Originally posted by: mugs
Originally posted by: bluewall21
Microsoft sell a product for $99? Crazy. I think they will stop production before it hits that low. They are already losing money on every Xbox they sell (as in their selling price is lower than their production price).
Microsoft has lost billions on their X-Box division. It's not uncommon to sell a system for less than it costs to produce, then make up the difference by selling games, but Microsoft hasn't made up the difference.
Link? I don't doubt that MS lost money is this neighborhood, but I hardly believe it was in the billions.
 

masterxfob

Diamond Member
May 20, 2001
7,366
5
81
Originally posted by: Wingznut
Originally posted by: mugs
Originally posted by: bluewall21
Microsoft sell a product for $99? Crazy. I think they will stop production before it hits that low. They are already losing money on every Xbox they sell (as in their selling price is lower than their production price).
Microsoft has lost billions on their X-Box division. It's not uncommon to sell a system for less than it costs to produce, then make up the difference by selling games, but Microsoft hasn't made up the difference.
Link? I don't doubt that MS lost money is this neighborhood, but I hardly believe it was in the billions.

seriously, billions is a large chunk of change. hundreds of millions, ok, but billions?
 

mugs

Lifer
Apr 29, 2003
48,920
46
91
Originally posted by: masterxfob
Originally posted by: Wingznut
Originally posted by: mugs
Originally posted by: bluewall21
Microsoft sell a product for $99? Crazy. I think they will stop production before it hits that low. They are already losing money on every Xbox they sell (as in their selling price is lower than their production price).
Microsoft has lost billions on their X-Box division. It's not uncommon to sell a system for less than it costs to produce, then make up the difference by selling games, but Microsoft hasn't made up the difference.
Link? I don't doubt that MS lost money is this neighborhood, but I hardly believe it was in the billions.

seriously, billions is a large chunk of change. hundreds of millions, ok, but billions?

Couldn't find the specific article I had read that reported a one-year loss of about $1 billion, but here's one that reports that their last quarter was the first profitable one:
Text

Microsoft said in January that its Xbox division turned a profit for the first time the prior quarter, spurred by the November release of "Halo 2." The division, on which Microsoft spent $12 billion between 2000 and 2004, earned $84 million, compared with a loss of $397 million a year earlier.

$397 single quarter loss = easily a billion lost that year.