...

But how, the next quarter is historically where the lowest amount is sold.

http://www.gamespot.com/articles/teardown-reveals-xbox-one-costs-90-more-than-ps4-to-make/1100-6416404/

"The combined costs of parts and manufacturing for the Xbox One comes out to roughly $471, almost $100 above Sony's PlayStation 4 ($381), according to a teardown report from IHS revealed by AllThingsD."

Xbox 1 ~ 471$ to make with kinnect.

Kinect is about 75$.

So that means Xbox without Kinect = 396$ to manufacture.

If you sell it at 349$ you lose atleast 47$ on each consol sale.

Factor in a game or two bundled like Assasins creed option (blackflag & unity), and the headphone chat set, along with cables that follow... The packageing, shipping ect.

I wouldnt be surprised if the overall loss on each sale is more than 70$.

jup they will be wrong

1.5 - 1.6 billion seems to low with the new surface 3 launch that quarter

ur totally wrong. ur numbers are just analyst estimates and extremely outdated

Computing and Gaming cost of revenue decreased, primarily due to a $265 million or 27% decline in Xbox Platform cost of revenue, driven by lower volumes and a lower cost per console sold.  

Its just a google of manufactureing costs.
Maybe its old, but its the only cost analysts of its manufactureing I could find with a quick google of it.

Maybe things are better now, cost wise (probably).
I still dont think Xbox is sold at a profit at 349$ though.

I kinda have to agree. These are way old, and I can say they've probably adjusted to around 350$ each. PS4 will probably have a price cut as well.

I said something wrong in this thread...

The 24% drop in revenue was only about Xbox hardware and not the others parts of the Computing and Gaming Hardware... I thought it was for the whole division.

Makes sense because Xbone dropped from $500 to $150... and even 360 had a price cut so the revenue goes down for sure.

PS. Thanks for the explanation of what are into the Computing and Gaming Hardware.

all we know for sure is Xbox Division (including hardware, accessories, gold subscription and third party royalty) is profitable since a long long time ago
last time they had a negative gross margin was FY Q4-13 with -647 and that included a 900 million writedown for Surface RT inventory. 

Without that it would have been profitable ofc.

And you also have to take into account, that the Surface is only profitable since FY Q1-15, 3 quarter ago.
Before, Xbox was able to offset negative Surface gross margin and even made some decent profits.
Surface was fist introduced FY Q2-12. And before that, the D&C Hardware Divison was called Entertainment and Device Division(mainly Xbox)

Fun Fact! Believe it or not in many places larger percentage of people use Window Phone per cell phones, than use Apple Compture vs the PC market.  

So yes, it is small, but still more significant than Apple Computers by compaison.  But it's also going way and becoming Windows 10 Phone or somthing like that.

Plus Bing runs Siri and Cortana; it should keep growing.