FishyJoe on 17 December 2008
This article does make it seem like they are making a profit on hardware even after the price cut.
http://www.guardian.co.uk/business/feedarticle/8164162
Although the global economic slowdown has hit consumer demand, Microsoft expects the overall video game industry to continue growing next year as more people choose to stay at home, said Alan Bowman, Asia general manager of Xbox operations.
...
In Asia, market research firm GfK said Xbox shipments in October grew by 53 percent compared to September after Microsoft cut the price of the console to less than $200.
No figures were available for the same period last year as they only began tracking the market late last year.
Bowman said current shipment volumes had reached such high levels that the company could afford to depend on volume to rake in a profit despite the lower prices.
"We're looking at some really great levels right now, so that allows us to pass on cost savings to our customers."
...
"Any global company needs to be mindful of their costs and money, but that's a combination of good internal controls and effective cost management," he said.
