When will the 360 finally get out of the hole of the rrod fixing costs? They make billions off of live in the last few years, kinect seems to be quite profitable (~50 dollars to make kinect camera and they sell it for 150 dollars), games like halo reach, fable, gears etc. bring in a lot of money. The system itself breaks about even mabye even makes a little money...how come they havn'nt made a ton of money overall?

Pardon my ignorance but how big was the rrod issue?

i think 3 billion- 5 billion in the hole. but i could be wrong

They are making a shit ton of money. They just lose a lot of shit ton of money also.

MS=/=retail. 

When I say this I mean MS doesn't sale Kinect for $150. You need to factor in shipping and retail's take

holy shit! so they are basically still trying to recover the loss for free repairs? Could that be a reason why live is going up in price?

i believe they are trying to cover repairs. and nope it was confirmed the live price went up bacause activision demanded it. because over 60% of people get live for call of duty ...

Here is a handy chart I made earlier.



I believe it's accurate ...

The purple is the timeframe when the 360 was out and losing money, the latter green is since 360 has been making money (yes since 2007!) the green at the top is original Xbox and all losses.

So since the 360 the E&D Division stands at about 1.449 billion to go before 360 is profitable.

The thing to note here though is that products come alone like the Kin (previous Q? or one before) and kill any profit. BUT the division is mostly made up of 360/Live.

Over the coming months with the revisions to the 360, Live price increase, Kinect (making a profit) and SW, the E&D division should make a killing, I estimate the 360 and E&D division to break even (since 360 launch) by calender year Q1 2012. Perhaps much sooner though tbh.

ugh feeding the beast. Really? COD has more online players than halo games? I find that hard to believe.

To the $50 Kinect comment.

In an interview with a Sony interview, it was suggested that the tech behind Kinect may actually be fairly expensive. Those estimates from sites is based on part costs alone usually, and do not include actually assembly, any contracts between designer and manufacturer, shipping and then any markup at the shelf from the retailer. So, in reality Microsoft is probably making little to no money on Kinect hardware.