Originally Posted by RAVEN56706
true but Microsoft is already making a profit on the xbox 360's....
Originally Posted by westa6969
The R&D was paid for long ago we're nearly two years later and R&D returns are generally 6 months - there's nothing new of significant costs added to the Elite and the box runs the old formula of disposal razors and inkjets anyways.
The $126 loss
per Xbox360 Premium console sale, reported last fall, excluded R&D costs. The $126 loss
per sale was based on the component costs.
As I noted in my previous post, the Microsoft's entertainment devision -- which receives all revenues from Xbox360 sales, accessories, game licensing, and Live subscriptions -- lost $1.26 billion in FY 2006. Those numbers are a bit inflated, because it includes $100 million spent on marketing for the Xbox360 launch.
In the most recent quarter, Microsoft's entertainment division -- which receives all revenues from Xbox360 sales, accessories, game licensing, and Live subscriptions -- lost $289 million. In its earnings conference, Microsoft said it hadn't been able to reduce Xbox360 costs as fast as it had hoped, but they expect to break even in 2007, thanks to reduced component pricing, increased licensing revenues, and new revenue sources (Video Marketplace).