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.
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.
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.
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!
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.
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.
Originally posted by Parental Adviso 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.
Ep, glad to see you come back and tidy up...did want to ask a one day favor, I want to enhance my resume , was hoping you could make me administrator for a day, if so, take me right off since I won't be here to do anything, and don't know the slightest about the board, but it would be nice putting "served administrator osnn", if can do, THANKS