"If these people were "estimating", I would think that there would be a range, say 50-200 and in between?"
Depends on what analyst you ask I guess.
This article gives a range:
news.cnet.com
"Microsoft is set to launch the Xbox on Nov. 15 at a retail price of $299. Estimates of Microsoft's cost to build each unit have ranged from $320 to $400. Microsoft representatives would not comment on manufacturing costs."
So that's a $20 to $100 loss....
In another article, Merrill Lynch analyst Henry Blodget thinks Microsoft could lose as much as $2 billion on Xbox.
news.cnet.com
But that's the headlines (the only part Charles and DaveBot read), if you read the full article, and similar articles, knowbody really knows. The IDC analyst mentioned in this article, say "The cost of the hardware goes down as the life cycle of the platform wears down. By the end of the life cycle, you're not selling much hardware but getting a lot of money from software."
I think Microsoft won't have any problems digesting a billion dollar investment in the Game console market.
Heck, they invested 5 billion in AT&T, and look how much that hurt them.
While I do think that there's a loss per box, I don't think it's in the $150 range, furthermore I suspect that if Microsoft can sell 2-3 Microsoft Game titles with each box, the loss is a non issue.
JMHO. |
