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To: Jim McMannis who wrote (40501)5/18/2001 9:20:18 PM
From: ptannerRead Replies (2) | Respond to of 275872
 
Jim, Re: X-box costs

As has been proposed my others, I sincerely believe MS will sell the X-box at a loss and make their money on the software licensing end. This is probably the same marketing program as current game stations.

WRT cost for Playstation 2 chip... I think $10-20 is probably far too low. Isn't this a huge chip?

-PT



To: Jim McMannis who wrote (40501)5/19/2001 12:59:49 AM
From: jcholewaRead Replies (1) | Respond to of 275872
 
> I don't think there is any way that MS could have the
> X-box retail for $299 and be paying much more than $30 a chip.

Consoles are generally sold under cost, at a steep loss. Some analysts were estimating that if Microsoft priced their console at $375, they'd be taking a loss of about $150 per console. So it would seem that it is possible that the cost could be as high as $500 or more.

So that means Intel might be charging MS as much as $230 per cpu. ;)