does the xbox hardware cost more than the $300 asking price?

[dionx]

does the xbox hardware cost more than the $300 asking price?

from pricewatch and for a comparable computer, here is the cheapest of prices for an xbox clone pc:
- Intel Pentium 3 733Mhz $83
- NVIDIA GeForce 3 Ti200 $199
- Micron 64MB DDR $20
- 5X DVD-ROM $28
- 10GB harddrive $50

from that alone, it's $380. that still doesn't include casing, networking, motherboard.

 

[loup garou]

Of course, almost all console hardware is worth more than the MSRP. It's made up for in software sales.

 

[Ameesh]

yes , microsoft takes a $125 loss on each of the units, thats why they dont sell it to employees! 🙁

 

[Ronstang]

Manufacturers get much better prices on components that that, and I mean MUCH better so it would cost YOU more to build one.

 

[VirusDub]

Considering it's been estimated that Microsoft loses $150 or so on each XBox sold, I'd say that yes, the consoles are very underpriced. However, very few people would buy a console for $400+. Until the price comes down, Microsoft is going to be making all (if any) profits from software.

 

[dionx]

<< Of course, almost all console hardware is worth more than the MSRP. It's made up for in software sales. >>





<< microsoft takes a $125 loss on each of the units >>




so does anyone know an estimate of the loss sony takes for the ps2 and nintendo for the gamecube?

 

[Lankin]

Sony is still taking a $60-75 hit per unit. The GC is from what I hear around a $10 loss per unit.

Also the nv2a costs around $49 in lots of 10000, the nforce esq chip costs around $39 in lots of 10000. Intel is giving the custom 733s at dirt cheap prices. Xbox is losing around $100-110 per unit, not $125 or $150..