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Forums - Microsoft Discussion - So...how much do you all estimate each Xbox360 costs to produce?

X-Man on 22 January 2008

Well, they're still not making any profit. The RROD has probably cost them over 2 billion by now, and they're nearing $10 billion in overall losses from the Xbox brand.



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hoerenkind on 22 January 2008
Legend11 said:
hoerenkind said:
Legend11 said:

Here's iSuppli's breakdown of cost for both the PS3 and Xbox 360 in November 2006:

PS3 and Xbox 360: Breakdown of production costs (US$)

Item

PS3 (60GB version)

Xbox 360 (20GB hard drive version)

Motherboard, CPU, graphics processor, chipset, etc.

352

204

Optical disc drive/player

125

19.45

Hard disc drive

54

43

Power supply

37.50

25.50

Bluetooth, 802.11 b/g network modules

19.60

N/A

Other components

150.50

N/A

Chassis and related

61.75

25.25

Assembly

40

6.10

Total cost

840.35

323.30

Retail price

599

399


The falcon chipset released in 2007 is known to have reduced the cost of the system.  Assuming an extremely conservative 25% drop in costs since 2006 a premium cost Microsoft ~$242.78 to make.  It's extremely likely in my opinion that the actual cost of making a premium is between $200-$242.78.

The reason why the PS3's manufacturing price has dropped so much compared to the Xbox 360 in one year is because the Xbox 360 experienced such a drop in it's first year of production (it went from ~$715 to ~$323.30 to produce.

that total cost is misleading it should be total production cost

 


That is the combined materials and manufacturing cost.

Here, see for yourself, here's an even more indept breakdown in which they state that it's the combined materals and manufacturing cost:

http://www.isuppli.com/news/default.asp?id=6919

exactly so marketing/shipping costs are NOT included

 



madskillz on 22 January 2008
X-Man said:
Well, they're still not making any profit. The RROD has probably cost them over 2 billion by now, and they're nearing $10 billion in overall losses from the Xbox brand.

Dang, dude. Do you have a source for this other than your butt?

OT - My bad on the earnings ... and Legend, as always, has the correct info. 



Game_boy on 22 January 2008
madskillz said:
X-Man said:
Well, they're still not making any profit. The RROD has probably cost them over 2 billion by now, and they're nearing $10 billion in overall losses from the Xbox brand.

Dang, dude. Do you have a source for this other than your butt?

OT - My bad on the earnings ... and Legend, as always, has the correct info.


RROD has indeed cost $1 billion so far according to MS themselves, and any Microsoft earnings report 2001-2007 shows over $10 billion in net losses since console production began.



Ubuntu. Linux for human beings.

If you are interested in trying Ubuntu or Linux in general, PM me and I will answer your questions and help you install it if you wish.

X-Man on 22 January 2008
madskillz said:
X-Man said:
Well, they're still not making any profit. The RROD has probably cost them over 2 billion by now, and they're nearing $10 billion in overall losses from the Xbox brand.

Dang, dude. Do you have a source for this other than your butt?

OT - My bad on the earnings ... and Legend, as always, has the correct info. 


Lol, do you feel threatened or something? There's no need to be hostile.

 http://news.softpedia.com/news/Microsoft-Lost-7-Billion-on-Xbox-and-MSN-9486.shtml

Microsoft lost $7 billion on the original Xbox and MSN, most of it which was a result of Xbox production costs. Add that to the 3-? billion they've lost on the 360, and it's nearing $10 billion.



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mrstickball on 22 January 2008

Considering thats Xbox AND MSN...Is not a fair representation.

Either way, I'd say the X360 is around the $220-$230 area + marketing and shipping through the supply chains.



Back from the dead, I'm afraid.

X-Man on 22 January 2008
mrstickball said:
Considering thats Xbox AND MSN...Is not a fair representation.

Either way, I'd say the X360 is around the $220-$230 area + marketing and shipping through the supply chains.

The majority of the $7 billion was lost on Xbox hardware, they reportedly lost a billion a year. Overall 360 losses are possibly worse factoring in the Red Ring of Death. 



madskillz on 22 January 2008
X-Man said:
madskillz said:
X-Man said:
Well, they're still not making any profit. The RROD has probably cost them over 2 billion by now, and they're nearing $10 billion in overall losses from the Xbox brand.

Dang, dude. Do you have a source for this other than your butt?

OT - My bad on the earnings ... and Legend, as always, has the correct info.


Lol, do you feel threatened or something? There's no need to be hostile.

http://news.softpedia.com/news/Microsoft-Lost-7-Billion-on-Xbox-and-MSN-9486.shtml

Microsoft lost $7 billion on the original Xbox and MSN, most of it which was a result of Xbox production costs. Add that to the 3-? billion they've lost on the 360, and it's nearing $10 billion.


No, I don't feel threatened. I knew it was high, but I wasn't counting on you adding MSN as well, which isn't part of the gaming division, no?

I am confident in my console choices. I will soon have all three consoles, but no real plans to expand my PS3 library at the moment ... 



X-Man on 22 January 2008
madskillz said:
X-Man said:
madskillz said:
X-Man said:
Well, they're still not making any profit. The RROD has probably cost them over 2 billion by now, and they're nearing $10 billion in overall losses from the Xbox brand.

Dang, dude. Do you have a source for this other than your butt?

OT - My bad on the earnings ... and Legend, as always, has the correct info.


Lol, do you feel threatened or something? There's no need to be hostile.

http://news.softpedia.com/news/Microsoft-Lost-7-Billion-on-Xbox-and-MSN-9486.shtml

Microsoft lost $7 billion on the original Xbox and MSN, most of it which was a result of Xbox production costs. Add that to the 3-? billion they've lost on the 360, and it's nearing $10 billion.


No, I don't feel threatened. I knew it was high, but I wasn't counting on you adding MSN as well, which isn't part of the gaming division, no?

I am confident in my console choices. I will soon have all three consoles, but no real plans to expand my PS3 library at the moment ... 


Including MSN it's actually OVER $10 billion, excluding MSN it's closing in on it like I said.



hoerenkind on 22 January 2008
X-Man said:
madskillz said:
X-Man said:
madskillz said:
X-Man said:
Well, they're still not making any profit. The RROD has probably cost them over 2 billion by now, and they're nearing $10 billion in overall losses from the Xbox brand.

Dang, dude. Do you have a source for this other than your butt?

OT - My bad on the earnings ... and Legend, as always, has the correct info.


Lol, do you feel threatened or something? There's no need to be hostile.

http://news.softpedia.com/news/Microsoft-Lost-7-Billion-on-Xbox-and-MSN-9486.shtml

Microsoft lost $7 billion on the original Xbox and MSN, most of it which was a result of Xbox production costs. Add that to the 3-? billion they've lost on the 360, and it's nearing $10 billion.


No, I don't feel threatened. I knew it was high, but I wasn't counting on you adding MSN as well, which isn't part of the gaming division, no?

I am confident in my console choices. I will soon have all three consoles, but no real plans to expand my PS3 library at the moment ... 


Including MSN it's actually OVER $10 billion, excluding MSN it's closing in on it like I said.


so what? we know they lost money but they are making now