Microsoft XBox 360 - Cost $525 Sells $399
Microsoft XBox has done it again. The XBox costs $525 to make, more to advertise and ship, and not counting any profit. They are selling it for $399, and the retail store must make money. So I figure at 10% That would make it about $369, which translates to a loss of at least $156, not counting any misc costs.
OK, we have seen this before. They plan on making the money off of the games. Well that is a lot of games. Yes, games are $40 and up, but how much is profit? You need to sell 4 or more games just to make that up. This is not just on one unit, but thousands of units. With so many people burning games, the profit is not going to be steep on this product.