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kitler53 on 21 March 2014
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Dark_Feanor said:
drkohler said:
Dark_Feanor said:
drkohler said:
kirby007 said:
the downplay is pretty hefty, the 180 machine vs the saviour of gaming

I wouldn't call it downplay. Roughly four months after launch and looking at the numbers, we see that XBox One has basically retreated into its two main markets: NA and UK. And in both markets, the console loses money ($450 with free game in both areas) to stay ahead. That is not really encouraging at this time.

That is not how it works. No one is losing money with Titanfall bundles.

Who are you trying to fool? Most teardowns seen list manufacturing costs of the X1 around $500 (and these might be generous estimates).

You are telling me that selling a console/game bundle for $450 (that includes taxes and store margins in UK) , nobody loses money?

Yes.

And if you think the XOne costs Microsoft 500 to manufacture you are delusional, the highest a saw a teardown was about U$475 and that is debatable... any way, most of then are guesstimation.

PS: by the way the bundle costs U$499... pricing at 450 would be still a good call for Microsoft, but that might strech the EA margins.

if you think the $500 retail price all goes to MS's manufacturing costs you are just as delusional.

start with those tear downs.  then add in shipping costs.  then subtract the retailer's margin.  then subtract EA's cut (cause as you know they get payed for every game sold as part of a the bundle).   ...and for now we're not even considering all the sunk costs in R&D.

MS is losing money on the hardware right now i promise you.  MS didn't pick a $500 MSRP because they wanted to make a $50 profit on every unit sold,... they priced it to be as competitive as they could afford without losing too much money.  by taking an extra ~$30 hit on every titanfall bundle i assure you MS is losing money atm.