MS was already giving the Xbox away for free almost, that thing was never efficient to produce and sell without making loses. The thing had clearly better hardware built in as it was built like a PC, sticking the best parts available.
they tried once to at least break even, here in mainland europe they launched it at 479 € price, 6 weeks later they dropped the price to 300€ to be even with the ps2 and gamecube.
The original xbox was probably a 800$ PC at the time.







