The race to 45nm... PS3 vs. 360

[RAZurrection]

rocketpig said:

DMeisterJ said:
But if Microsoft cuts the Pro/Premium 100 bucks, they may not be making profit... 360s are sold at a loss as of right now right? And they make their profit off of their astounding Software sales?

I think once Jasper comes out, there will be a price drop, but I don't expect them to profit that much, seeing as that they will likely chop 100 off of each sku.

I have a hard time believing MS isn't making a modest profit from the 360, at least in NA.

It was reported that it cost them roughly $550 to make a Pro in November of 2006 IIRC... Over 18 months later (and one chipset reduction), it has to be nearing half that cost given the state of your average technology price point.

One thing that is really baffling is the 90nm GPU... You would think that 30 months into the life cycle, it would have been reduced by now.

They've made $621 million in the last 9 months

They've sold about 6 million 360s in the last 9 months

They could have knocked another $50 off the RRP on those 6 million and still came it at $300 million profit, 8 million to $200 million (though since those extra 2 million would have bought games and Live, profits would be a bit higher)

It should be obvious at this point MS is making obscene cash on 360

Here's PS2's profits for each fiscal year since it launched up to PS3's launch

2000    730,000,000   
2001    -409,000,000 
2002    623,000,000   
2003    939,000,000   
2004    650,000,000  
2005    404,000,000   
2006    75,000,00    

If MS makes $30 million in profit next quarter it will beat the underlined year, which means MS's Entertainment division would have bested 5 of 7 the PS2's profitable years.

I really thing people underestimate how much the 360 has made since September