Xbox 360 manufacturing costs drop by 40%
That hot new MP3 Player you need cost a bit too much for you? Don’t worry. Wait a year or something. Of course by, then there will be a new MP3 player out that makes yours look like a pet dog’s chew toy. But you don’t mind. At least it’s economic.
A year ago it was generally believed that the components to make an Xbox 360 cost around $525. Some believed that Microsoft sold at a loss of US$ 124 per unit. It’s a different story now though, as the component prices for the console have dropped. Analysts believe that Microsoft could be saving as much as 40% on manufacturing costs. This gives Microsoft a profit of around US$ 75 per system sold.
So what does this mean? Well for one thing, Nintendo isn’t alone in the profit-per-unit sold pedestal anymore. *chuckles*
What else? Well some people think that Microsoft might want to keep the current price and just add in more stuff to their console. Some think that a price drop would be better. Imagine: a Core system that’s cheaper than a Wii? Sounds nice right?
Of course Microsoft could just choose to get as much profit as they can and just focus on selling more consoles so that they can earn US$ 75 per box.
If you were a Microsoft exec, what would you do right now?
Via 2old2play
That hot new MP3 Player you need cost a bit too much for you? Don’t worry. Wait a year or something. Of course by, then there will be a new MP3 player out that makes yours look like a pet dog’s chew toy. But you don’t mind. At least it’s economic.
A year ago it was generally believed that the components to make an Xbox 360 cost around $525. Some believed that Microsoft sold at a loss of US$ 124 per unit. It’s a different story now though, as the component prices for the console have dropped. Analysts believe that Microsoft could be saving as much as 40% on manufacturing costs. This gives Microsoft a profit of around US$ 75 per system sold.
So what does this mean? Well for one thing, Nintendo isn’t alone in the profit-per-unit sold pedestal anymore. *chuckles*
What else? Well some people think that Microsoft might want to keep the current price and just add in more stuff to their console. Some think that a price drop would be better. Imagine: a Core system that’s cheaper than a Wii? Sounds nice right?
Of course Microsoft could just choose to get as much profit as they can and just focus on selling more consoles so that they can earn US$ 75 per box.
If you were a Microsoft exec, what would you do right now?
Via 2old2play
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