Hankoney said:
I haven't realized that XOne is manufactured at such a low cost, that it can cover all of its fixed costs by selling at a huge discount while at the same time giving away blockbuster games and annual subscriptions... |
It is really annoying to see these neverending "MS makes a profit" mantras week by week. Fact is that MS has lost a sh"tton of money with their Titanfall bundles. It really doesn't take a rocket scientist to see that selling the bundles around $450 (even in England where that includes way over 20% taxes and margins - and in Germany, prices also fell sharply recently) gets you into red numbers. When most teardowns, even the "pure guesses" ones, are around $490 for the manufacturing costs, you don't even need to factorise the 24/7 advertising blitz into the equation. Hell, in Spain they had a 20mio Euro advertising blitz and sold less than 100'000 units up to now. All things considered, their Titanfall blitz easily lost them over $100-$150 per console. And then come the NPD numbers and the "get rid off" investor group is likely starting to make noises again seeing this fiasco. It must be interssting times working in the XBox department currently....
