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What is the "at-cost" price of an XBOX?

S

slydecix

Golden Member
Does anyone know what the "at-cost" price is for an XBOX? By "at-cost" I mean what the retail stores pay the wholesalers/suppliers for the product. I was just wondering how much of a margin the retailers make off of something like a video game system.

Thanks
 
When I was working for BestBuy, the employee discount was 5% over cost of whaat Bestbuy paid for the item. Consoles you only literally saved a few pennies. So I would imagine that they paid 99% of the price thats it on sale for now. Money is in the accessories
 
There is little markup, if any, on a console. Nintendo, Sony, and Microsoft all sell them to retailers at about the same amount as they retail. This is due to the fact that Sony and Microsoft I believe lose money on each console, and Gamecube barely breaks even. The money is in the accessories and games.

If you want a cheap Xbox, get a remanufactured unit from Microsoft available at EB Games for $149.99. These are units returned to Microsoft that have been repaired, tested, and repackaged.
 
Originally posted by: Elitebull
Does anyone know what the "at-cost" price is for an XBOX? By "at-cost" I mean what the retail stores pay the wholesalers/suppliers for the product. I was just wondering how much of a margin the retailers make off of something like a video game system.

Thanks
Click to expand...
To conclude thus far, no. No one knows the "at-cost" price.
 
Originally posted by: yamahaXS
I think the retailer probably make a fair amount of profit, BUT the manufacturer (MS) sets the wholesale price at or near cost.
Click to expand...

Actually the manufacturer loses money on all new consoles. After they have been made for a while and revisions are made they start making them cheaper and may turn a small profit on the hardware.
 
Originally posted by: AU Tiger
There is little markup, if any, on a console. Nintendo, Sony, and Microsoft all sell them to retailers at about the same amount as they retail. This is due to the fact that Sony and Microsoft I believe lose money on each console, and Gamecube barely breaks even. The money is in the accessories and games.

If you want a cheap Xbox, get a remanufactured unit from Microsoft available at EB Games for $149.99. These are units returned to Microsoft that have been repaired, tested, and repackaged.
Click to expand...

Is it just me, or would anyone else not buy a refurbed system? I know they've been repaired and tested, but I'd rather drop the extra $50 to have a new system.
 
Originally posted by: Elitebull
Does anyone know what the "at-cost" price is for an XBOX? By "at-cost" I mean what the retail stores pay the wholesalers/suppliers for the product. I was just wondering how much of a margin the retailers make off of something like a video game system.

Thanks
Click to expand...

Just as they did with the WebTV, Microsoft sold the XBOX for less than what they put into as far as research/development, labor, parts, and taxes. They are making the profit from the games.

I don't have an exact figure but it's more than what it is currently being sold for.
 
Originally posted by: thawolfman
Originally posted by: AU Tiger
There is little markup, if any, on a console. Nintendo, Sony, and Microsoft all sell them to retailers at about the same amount as they retail. This is due to the fact that Sony and Microsoft I believe lose money on each console, and Gamecube barely breaks even. The money is in the accessories and games.

If you want a cheap Xbox, get a remanufactured unit from Microsoft available at EB Games for $149.99. These are units returned to Microsoft that have been repaired, tested, and repackaged.
Click to expand...

Is it just me, or would anyone else not buy a refurbed system? I know they've been repaired and tested, but I'd rather drop the extra $50 to have a new system.
Click to expand...

I would. Why wouldn't you? If Microsoft checks them out, says they are OK and gives them some sort of warranty (which they do), then why wouldn't you want to save 25%?
 
Originally posted by: mpitts
Originally posted by: thawolfman
Originally posted by: AU Tiger
There is little markup, if any, on a console. Nintendo, Sony, and Microsoft all sell them to retailers at about the same amount as they retail. This is due to the fact that Sony and Microsoft I believe lose money on each console, and Gamecube barely breaks even. The money is in the accessories and games.

If you want a cheap Xbox, get a remanufactured unit from Microsoft available at EB Games for $149.99. These are units returned to Microsoft that have been repaired, tested, and repackaged.
Click to expand...

Is it just me, or would anyone else not buy a refurbed system? I know they've been repaired and tested, but I'd rather drop the extra $50 to have a new system.
Click to expand...

I would. Why wouldn't you? If Microsoft checks them out, says they are OK and gives them some sort of warranty (which they do), then why wouldn't you want to save 25%?
Click to expand...

I didn't really think about the warranty side of it, but I dunno....I like my stuff new 🙂
 
Originally posted by: Roger
As a general rule, most retail stores mark up thier products 50% to 100%.
Click to expand...

No where near the markup on electronics. COmputer peripherals - MAYBE 20%, and that's high retail. 7-10% for the mainstream Internet dealers.

Maybe cables and floppy drives.. 😀
 
Originally posted by: thawolfman
Originally posted by: mpitts
Originally posted by: thawolfman
Originally posted by: AU Tiger
There is little markup, if any, on a console. Nintendo, Sony, and Microsoft all sell them to retailers at about the same amount as they retail. This is due to the fact that Sony and Microsoft I believe lose money on each console, and Gamecube barely breaks even. The money is in the accessories and games.

If you want a cheap Xbox, get a remanufactured unit from Microsoft available at EB Games for $149.99. These are units returned to Microsoft that have been repaired, tested, and repackaged.
Click to expand...

Is it just me, or would anyone else not buy a refurbed system? I know they've been repaired and tested, but I'd rather drop the extra $50 to have a new system.
Click to expand...

I would. Why wouldn't you? If Microsoft checks them out, says they are OK and gives them some sort of warranty (which they do), then why wouldn't you want to save 25%?
Click to expand...

I didn't really think about the warranty side of it, but I dunno....I like my stuff new 🙂
Click to expand...

On a PS2 I wouldn't worry about a refurbed system (heck I sent in my launch system for repair, so its refurb'd now). But on a xbox, I would probably buy new. The fact that it has a hard drive makes me a bit nervous about what people do to their consoles. I know a family that had to return their xbox after completely ignoring the don't move/shake/drop it while it's turned on. Don't ask, they were so stupid in beating on it I'm amazed they could turn it on.

I guess knowing about that I'm afraid I'd be the unlucky sob to get a scratched up hard drive.
 
Is it just me, or would anyone else not buy a refurbed system? I know they've been repaired and tested, but I'd rather drop the extra $50 to have a new system.
Click to expand...
My refirb PS2 has been working fine for me (knock on wood). Granted, I don't play it a ton, but when I do, its usually a marathon gaming session.

I'd get a refirb xbox, but I wanted JetSetRadio Future, so I just bought a new one. Besides, can't get 24 months interest free financing on the refirbed ones 🙂
 
Not sure on xbox but i know the cube originally cost 192 (before the price drop) so the xbox is definatlely around the 185-195 range.
 
yeah, the profit is in the accessories. They are like an addiction. The xbox is the "cheap" sample and then they hit you.
 
Originally posted by: Antisocial-Virge
Originally posted by: yamahaXS
I think the retailer probably make a fair amount of profit, BUT the manufacturer (MS) sets the wholesale price at or near cost.
Click to expand...

Actually the manufacturer loses money on all new consoles. After they have been made for a while and revisions are made they start making them cheaper and may turn a small profit on the hardware.
Click to expand...

nintendo didn't lose money on gamecube, unless you are counting development costs and then it is obvious that they are losing money for a while.
 
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