How much does it cost to make the 360?

[Comrade Tovya]

Barozi said:

damndl0ser said:
Like others have said, M$ probably loses a small amount on the Arcade and makes money on the pro and even more on the Elite. I would guesstimate that they probably make a small profit overall ( all consoles added together ) but not much. The only way you can really tell is by going over their quarterly profits.

They only have a Entertainment and Devices division in their reports so you can't really see if the 360 makes a profit or not.

 

And more importantly, MS doesn't mind going in the red... they have the cash on hand to take massive losses, because their longterm goal is to make the XBOX brand take over the gaming world like they did the PC with Windows.

Of course, it won't happen, but that's their plan (and of course, no doubt Nintendo and Sony would love to be the only console choice as well).  It's just business.