PS2 and XBOX

Discussion in 'Console Gaming' started by Parental Adviso, Jun 5, 2002.

  1. Im debating with a dumb friend that thinks it costs 900 dollars to make an xbox how much do you think it costs just to make one i say 100-200 dollars
     
  2. Sazar

    Sazar F@H - Is it in you? Staff Member Political User Folding Team

    Messages:
    14,905
    Location:
    Between Austin and Tampa
    perhaps more like the lower end mate :) don't go by market prices for what the big M gets its products for...

    remember that X-box mnanged to cut its prices only by getting the manufacturers of the different components to rework/reprice the components... :)

    :D
     
  3. i just want to know how much you guys think or know how much it is to make an xbox or ps2
     
  4. If I'm not mistaken Microsoft's business model for the Xbox is to sell the console at a loss and make up for that cost with peripherals and games.

    They stated this when the price was $300.

    If I were a bettin' man I'd say it costs them about $250 per system.
     
  5. Glaanieboy

    Glaanieboy Moderator

    Messages:
    2,626
    Location:
    The Netherlands
    I think the prices are about $ 20 higher than the actual selling price. Yes they makes losses when only consoles are sold. The thing they are making money with (and a lot) are the games. That's why the games are so expensive compared to the PC-ones. As for the Xbox I'm not sure. M$ makes use of expensive components, like a Pentium III processor and a Geforce 2 for the graphics. But then, If I put all things together, I think it's around $ 270 for the XBox and about $ 200 for the PS2.
     
  6. Liger ZERO

    Liger ZERO Guest

    $500 :rolleyes: I think its more like $250. If it was $500 MS would not do it.
     
  7. Dexen

    Dexen Guest

    Im the dumb friend, when i said 900 i mean 900 canadian, he also disagreed and said they make money on every system they make. I told him that with most consoles the money comes from the games but he doesnt agree. So he said he would post on here because you guys are smart.
     
  8. Reg

    Reg eXperienced!

    Messages:
    639
    Location:
    Arlington, TX
    Here's the whole idea (I know this because I used to review video games for sony and xbox websites)...

    The XBox costs Microsoft approximately $500 to build. For Sony, they spend about $450 (mainly because of the RISC processor).

    Video game companies make their money from the games and peripherals. See, video game developers (and people who make other hardware such as controllers, memory cards, etc) have to pay a royalty per game sold, plus they purchase a license to develope games on the console. They also pay for what are known as debug units, which are unsecured versions of the system (for Sony, the PS2 debug can cost as much as $1,200 each. Microsoft actually sends a PC based XBox which is a PC with XBox emulation) for testing and creating their games. Because these units are licensed (not purchased), they have to renew the license in which they pay an additional fee. So, Microsoft and Sony can loose money on the system because they make 4 times the amount lost per sale (this is why video game companies are more strict on game pirating than on stealing systems).

    As for Sony, no sony wasn't stupid for dropping their prices. In fact, they were smart. Press releases went out a few months ago stating that Microsoft was going to drop their prices on the XBox. However, the money to do so wasn't there (before you say "Microsoft is nearly the richest company in the world!", you must know that the XBox devision is an LLC. This means that they make their own money and are not funded by Microsoft Corp... unless they are in financial debt). Sony got a hold of the press release and decided to drop their prices first, forcing Microsoft to drop their prices. Because of this, Microsoft got hurt in the short run because Sony can afford to give the system away for nearly free right now, as opposed to Microsoft.
     
  9. Grandmaster

    Grandmaster Electronica Addict Political User Folding Team

    Messages:
    10,574
    Location:
    Santa Clara, CA
    ok, check this out:

    Ps2($200)
    Ps2 Hardrive Adaper($50.00)
    Ps2 Broadband/Narrowband Adapter($50.00)
    = $300

    GameCube($200)
    GameCuve Hardrive Adaper($50.00)
    GameCube Broadband/Narrowband($50.00)

    = $300

    Xbox only *$200.00* with all that.

    So infact if you are going to play online games on Ps2 and GC, you are going to pay an extra $100! For Xbox, its already built-in... so at $200 it's a REALLY good deal, and one of the reasons I bought an XBox on the launch day!

    o_87
     
  10. Reg

    Reg eXperienced!

    Messages:
    639
    Location:
    Arlington, TX
    The topic isn't whether or not one system is better or cheaper than the other. The topic is "How Much Do They Really Cost To Make."
     
  11. w0lv3rin3

    w0lv3rin3 The Source Political User

    Messages:
    465
    Location:
    Barrie, ON
    Bet

    I Bet Just Arounf 200-300$

    u can get stuff in the bulk for a very very cheap price.

    no dout if they only paid that much
     
  12. Reg

    Reg eXperienced!

    Messages:
    639
    Location:
    Arlington, TX
    I was just pointing out to o_87 that the topic was about cost and not which is better. Otherwise, this thread would be flammed with "fan boys" talking about which is better and all that.
     
  13. Reg is quite right i asked what the price of one is to make basicallly to solve a debate. But this is interesting keep the posts coming i email microsoft to ask them dunno iif they will tell me but lets cross our fingers.
     
  14. Electronic Punk

    Electronic Punk Administrator Staff Member Political User Folding Team

    Messages:
    18,590
    Location:
    Copenhagen, Denmark
    I removed that post, as I don't want personal attacks here.
    cheers.
     
  15. k no need for fighting i made the post and i intended only to have responces that are generally related to the Subject no need for fighting. Technically the question was what you guys thought it would cost to make one. So you rally cant answer that multiple times unless someone that works there posted. That is all Have fun and play nice.
     
  16. Grandmaster

    Grandmaster Electronica Addict Political User Folding Team

    Messages:
    10,574
    Location:
    Santa Clara, CA
    ok, when I posted previously in this thread, I didnt mean to start a fight.... I just thought that it would be interesting to see people's responses....

    P.S catch23, YES i have looked at Microsoft's online plans, wat seems so bad about them to you?

    o_87
     
  17. dreaddy

    dreaddy Guest

    Pricing the cost based on retail value of components?
    about $300+
    Pricing based on the corporate buying power...
    really hard to say.

    Keep in mind that when MOST big corporations say that they are selling at a "loss." It doesn't necessarily mean that they are selling at a price less than cost to build it.

    It simply means that they are making less of a profit than they would prefer to make.

    Micro$oft is still making a profit on the console, just not compared to what they are making on software.
     
  18. dreaddy

    dreaddy Guest


    I think that Micro$oft does make a small profit from the consoles.
     
  19. dreaddy

    dreaddy Guest


    Catch23

    I did read the other posts.

    The estimated costs shown for building an Xbox were based on retail price assumptions or match (something we would pay).

    Corporate/wholesale buyers do not pay retail for their parts. In addition to that, the volume at which the parts are purchased (millions) would push the cost even lower than even wholesale.

    Then you take into consideration the fact that a significant number of parts were purchased overseas where the dollar is weaker. Then assembled overseas where the labor is cheaper.

    All that considered plus other factors that I will not go into, allows me to conclude that Micro$oft is still making a profit on the system.

    Which is the point I am trying to make....does this make sense?
     
  20. Gouk

    Gouk Guest

    How much does it cost to make a Atari 2600 :D