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Seece on 02 November 2014
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Vena said:
Seece said:
Nobody can deny this is an interesting turn of events for XB1 on Amazon.


One thing I am curious of, are they pulling, effectively, a Sony on PS3? As in, I wonder how heavy the losses are they are sucking up on per-unit sales and lost software throughput to build up the install base and rebuild their image. I know the PS4, with its better hardware, is razor edge model on sales for hardware even at its current price point, I wonder how (if) negative the X1s are going to be for Microsoft.

I doubt its to the level of PS3 (>200$ lost per console) but its probably high.

They said they made a profit at $499 with Kinect. I've heard Kinect costs $70? So have to assume the $399 was making a slight loss, but at $349 it's break even bigger. ($70~)

Then factor in the free game, they're losing about $30 there.

So $100~ in total would be my guess.

$100 x 3m = $300m loss (for US shipements anyway) this holiday.

Considering the Xbox division made $400m last Q, I don't think MS need to worry.