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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: DiViT who wrote (63298)	11/24/2001 2:56:41 PM
From: Dave	Respond to of 74651

"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.... No way. That would only be true if you bought directly from the Microsoft store. But most people will purchase from a major store, or from a smaller store that buys from a distributor, so you can't just subtract the build cost from the retail price to find Microsoft's loss, even if we agree to ignore the costs of development, support, and marketing. So MSFT will lose more than that on each box. Dave

To: DiViT who wrote (63298)	11/24/2001 3:20:57 PM
From: Charles Tutt	Respond to of 74651

It would be interesting to see what warranty costs are, IMHO. Charles Tutt (TM)

To: DiViT who wrote (63298)	12/6/2001 12:14:05 AM
From: Dave	Respond to of 74651

"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.... As we've discussed at length here, that's not the way retail sales work. If everybody shopped at the Microsoft store in Redmond, that might be true. But they don't. Microsoft won't be selling the XBox for $299 to the distributors who sell to retail stores. Dave