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obieslut said:

.//// they are billions of dollas in the red with the xbox brand and with the way they are going they are only going to get even deepr into the red.

I think if they kep up lik this then they are not going to last in the games market too long

 

 

PS3 blinded fanboy...

Where do you get your figures ??? I would like to know ?? Sources ??

MS in the red ??? You are talking about Microsoft, the most profitable evil empire !

 

Some quote from 2006 :

"

The combined materials and manufacturing costs for each device come to about $806 for the model with a 20GB hard drive, excluding the cost of the controller, cables, and packaging, iSuppli said.

With a suggested retail price of $499, that would mean Sony is taking a loss of about $307 on each console it sells. The differential for the 60GB model is less, with the cost exceeding the price tag by $241.

By comparison, the materials and manufacturing costs for the hard-drive version of Microsoft's rival device, the Xbox 360 are $323, iSuppli estimated. That's less than the suggested retail price of $399.

"It's common for video-game console makers to lose money on hardware, and make up for the loss via video game-title sales. Still, the size of Sony's loss per unit is remarkable, even for the video-game console business," iSuppli said."

 

The price cut is interesting : Hardware manufacturer generates loses or poor marging by selling consoles. M$ is making money from the XBLA (huge money according to E3 declaration) and the games, not the consoles. Since the install base of PS3 is slowly catching up (20,5 millions XBOX360 vs 15 millions PS3 according to VGchartz), they are willing to attract more customer via a cheaper console and generate more marging via games and XBLA, I suppose ...

Don't forget that the strategy of M$ is to generate sales via online content, while Sony puts hope in the adoption of the Blue-Ray media. The next move of Sony will be very interesting to see ! :)

This is personal opinion/analysis of course...



 

Evan Wells (Uncharted 2): I think the differences that you see between any two games has much more to do with the developer than whether it’s on the Xbox or PS3.