greenmedic88 on 29 March 2009
| slowmo said: Xbox Live is part of Microsoft's business model for the 360 and one of the reasons the 360 is so cheap (hardware wise) because they can make profit elsewhere. Same thing with their accessories which are definately overpriced. |
And this couldn't be more true.
Basically, those official MS peripherals from the overpriced HDDs to the overpriced WiFi adapter, battery packs, etc. and the XBL Gold fees are subsidizing the very reasonable cost of the 360 Arcade, of which I am positive MS is currently losing money on per unit.
But the whole official peripheral sales to support console losses is nothing new; they've always been among the most profitable aspects of console gaming to platform developers. For both retailers and manufacturers.
(and count me among the masses still wondering why the D-pad on the controller is so ridiculously awful)
