Microsoft Going For Broke?

november 26, 2005

Yes, we know Microsoft has a lot of cash in the bank, but is this real? Reports are coming out that the Xbox 360 Premium ($399 retail) costs $525 to make (not including the cost of the power cable). I know that console makers (like Microsoft, Sony and Nintendo) do sell consoles at a loss so that in the long run they can make money on the software. But, some are now wondering how many games need to be sold for Microsoft to recoup the $125 loss that they are taking on the console.