Just looking at the interesting snippits in the Xbox 360/EDD financial report.
They shipped ~11M vs ~8M Xbox 360s and yet their cost of revenue fell 7%. The Falcon Xbox 360 wasn't superceded by Jasper in retail until November/December so chances are that 40% the Xbox 360s shipped were Falcon models for that financial year.
The overall cost of revenue was 4.3B vs 5.6B in revenue so talking about the variable costs on their own its definately affordable and the fixed costs or revisions, R+D, and advertiseing etc would be divided over a greater number of consoles so their impact would be even more dispersed.
Xbox 360 Live subscriptions increased precisely on par with the number of consoles shipped which implies that the people who aren't going online are getting Arcades or the Arcade/Premium balance has remained fairly static. Also paid downloads over Live increased by 73% which is greater than the percentage increase of total console ownership.
So looking forward the revenue from games/Live will likely be higher as the total console ownership has increased 50% over the last financial year and thats in spite of the recession, the cost of revenue per console is coming down so again it will probably cost them less money to ship more Xbox 360s this year than last year and the overall revenue will be higher. Given that the average revenue per Xbox 360 sold worldwide is probably $250, console sales now make up less than half the overall revenue of the system and this ratio will probably tip further still by the end of the year.
Tease.
