How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 487.55

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Dec 30 3:59 PM EST

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To: Dave who wrote (63260)	11/23/2001 5:42:07 PM
From: ericneu	Read Replies (1) of 74651

thanks for the information, is it possible for you to clarify the source of the $150/box loss? That's one of many estimates. Microsoft hasn't announced the manufacturing cost of an Xbox. Do you know what factors contribute to this loss? That's the traditional console business model: 1. Sell the hardware at a loss to build the installed base. 2. Collect royalties on games and peripherals. 3. Drive down hardware costs over the 5+ year average console lifespan. The original Playstation went through many hardware revs for just this purpose. 4. Eventually make a profit on the hardware in addition to royalties. - Eric

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