Microsoft loses $125 on every Xbox 360

by admin November 26, 2005 at 8:15 am

More than 30 per cent subsidy to build market share

Microsoft is paying a 31 per cent subsidy on its premium Xbox 360 that, according research firm iSupply.

Based on an analysis of the components in the gaming device, Andrew Rassweiler, manager of iSuppli?¢‚Ǩ‚Ñ¢s Teardown Analysis Service estimated the bill of materials for the device runs at about $525.

The bill of materials does not include costs for testing, distribution, and marketing.

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