mrstickball said:
If you feel I'm wrong, provide a rebuttal rather than claiming what I say is 'garbage' As for Arcade profitability. We haven't seen any hard-fact statements since iSuppli deemed that the Arcade was being made for around $280, plus cost on the new free memory card plus games packed in with each Arcade. If you follow Moore's Law for gaming systems (as you should), then the Arcade should be getting produced for around a cost of $140 USD + 512MB Card and Games (lets factor in a high estimate of $155). So $155 + Misc expenses such as shipping, and other costs. So from my perspective, it's hard to see how the Arcade isn't breaking even, or making Microsoft a little profit too. |
Please do not abuse Moore's law to figure out manufacturing gadgets costs, it makes you look really dumb as it has absolutely nothing to do with it. Here are the rough manufacturing costs for you favourite gadgets (now in production, assume +/- 10% for the sake of not arguing about a few $ and c):
PS3: $350
PS2: $90
XBox360 Arcade: $250
XBox other models: $290
Wii: $95
If you think that MS can sell the Arcade Model for under $200 and make profit, you are seriously wrong. Not to get drowned in losses, the trick is obvious for the arcade model: sell the necessary stuff (hd) at hightly inflated prices to cover some ground
And before we go into the "who are you to quote numbers" replys, I'm not going to answer any or reveal my sources, just take it as gospel or dream on.
