kber81 said: Sintinel said: Actually, MS broke even on the 360 about 9 months ago, and have been making a profit on them since a little after that. "The PS2, meanwhile, long ago turned profitable as component prices have plunged and development costs have been written off. Even at $130 a pop, Sony earns about $8 on each PS2 it sells, compared with an estimated loss of $250 per PS3. (Nintendo is believed to break even on the Wii, while Microsoft takes a loss on the Xbox 360.)" - Source - December 28 2006

It's a gloomy picture, but there is light at the end of the tunnel. When iSuppli tore down an Xbox 360 around this time last year, the firm estimated that Microsoft was losing $126 on each 360 sold. Microsoft is whistling a much happier tune now. Revised component costs for the Xbox 360 indicate that costs have dropped to the point where each $399 Xbox 360 sold costs $323.30 to make—leaving Microsoft $75.70 in the black on each system, before marketing and other costs are figured into the equation.

The strategy of selling a console at a loss or near-loss is common in the console games industry, as console makers expect to make up the loss through game licensing. Since Microsoft owns the intellectual property rights to the hardware used in the Xbox 360, they can easily switch to new fabrication processes or change suppliers in the future to reduce costs. Thanks to streamlined processes and ample component supplies, a report from iSuppli released on November 16, 2006, estimates the total cost of components in the premium bundle is US$323.30.

Sintinel said: By the way ,seeing as it sells about as much as the X360 and it wastes much less shelves space do you think retailers will force Microsoft to price cut the X360 as well ?? I am a bit tired of all these fake news .... No because people actually buy games for the Xbox 360. Retailers don't make much money on hardware, they make it all on games and accessories. The Xbox 360 sells a helluva lot of both, the PSP, not so much.

Diomedes1976 said: Funny thing is DS hasnt received a single good game in all the year (except maybe Lunar Knights ) while the DS has received Burnout Dominator ,Ratchet & Clank Size Matters ,Sid Meier Pirates ,Call of Duty ,ISS 07 ,Gurumin ,Chili Con Carnage ,MLB 07 ,MLB The Show ,Afterburner Black Falcon ....yet still the DS wins because of the non-games as Nintendogs and Brain Training .I personally dont care wich sells more ,I would like the PSP to sell more but as it is is a perfectly viable plattform and with the kind of software it is receiving I am very happy with it and wouldnt change it for the DS with all its Nintendogs and Pokemons ...no matter if it sells more .

sieanr said: Diomedes1976 said: Funny thing is DS hasnt received a single good game in all the year (except maybe Lunar Knights ) while the DS has received Burnout Dominator ,Ratchet & Clank Size Matters ,Sid Meier Pirates ,Call of Duty ,ISS 07 ,Gurumin ,Chili Con Carnage ,MLB 07 ,MLB The Show ,Afterburner Black Falcon ....yet still the DS wins because of the non-games as Nintendogs and Brain Training .I personally dont care wich sells more ,I would like the PSP to sell more but as it is is a perfectly viable plattform and with the kind of software it is receiving I am very happy with it and wouldnt change it for the DS with all its Nintendogs and Pokemons ...no matter if it sells more . Thanks for showing us whats up, namely no self respecting gamer buys a DS, it's all those foolish "casuals" who also own PS2's. Good thing the PSP wins in terms of quality because the faux hardcore know that sequels and "mature" games are the shit, and anything fun or innovative is crap. You're right, it doesn't matter which wins and you don't care. In fact, you don't care so much that you make a post claiming the PSP is superior despite it's poor sales. Good thing I don't care soo much that I make a post in response, just to show how much I don't care.

Diomedes1976 said: sieanr said: Diomedes1976 said: Funny thing is DS hasnt received a single good game in all the year (except maybe Lunar Knights ) while the DS has received Burnout Dominator ,Ratchet & Clank Size Matters ,Sid Meier Pirates ,Call of Duty ,ISS 07 ,Gurumin ,Chili Con Carnage ,MLB 07 ,MLB The Show ,Afterburner Black Falcon ....yet still the DS wins because of the non-games as Nintendogs and Brain Training .I personally dont care wich sells more ,I would like the PSP to sell more but as it is is a perfectly viable plattform and with the kind of software it is receiving I am very happy with it and wouldnt change it for the DS with all its Nintendogs and Pokemons ...no matter if it sells more . Thanks for showing us whats up, namely no self respecting gamer buys a DS, it's all those foolish "casuals" who also own PS2's. Good thing the PSP wins in terms of quality because the faux hardcore know that sequels and "mature" games are the shit, and anything fun or innovative is crap. You're right, it doesn't matter which wins and you don't care. In fact, you don't care so much that you make a post claiming the PSP is superior despite it's poor sales. Good thing I don't care soo much that I make a post in response, just to show how much I don't care. I said "I dont care while it is a viable plattform " .It is ,and in the software front it seriously smokes the DS .I have been following the game reviews and release schedule of both handhelds and the amount and quality of the PSP software is a lot higher .

gebx said: Diomedes1976 said: sieanr said: Diomedes1976 said: Funny thing is DS hasnt received a single good game in all the year (except maybe Lunar Knights ) while the DS has received Burnout Dominator ,Ratchet & Clank Size Matters ,Sid Meier Pirates ,Call of Duty ,ISS 07 ,Gurumin ,Chili Con Carnage ,MLB 07 ,MLB The Show ,Afterburner Black Falcon ....yet still the DS wins because of the non-games as Nintendogs and Brain Training .I personally dont care wich sells more ,I would like the PSP to sell more but as it is is a perfectly viable plattform and with the kind of software it is receiving I am very happy with it and wouldnt change it for the DS with all its Nintendogs and Pokemons ...no matter if it sells more . Thanks for showing us whats up, namely no self respecting gamer buys a DS, it's all those foolish "casuals" who also own PS2's. Good thing the PSP wins in terms of quality because the faux hardcore know that sequels and "mature" games are the shit, and anything fun or innovative is crap. You're right, it doesn't matter which wins and you don't care. In fact, you don't care so much that you make a post claiming the PSP is superior despite it's poor sales. Good thing I don't care soo much that I make a post in response, just to show how much I don't care. I said "I dont care while it is a viable plattform " .It is ,and in the software front it seriously smokes the DS .I have been following the game reviews and release schedule of both handhelds and the amount and quality of the PSP software is a lot higher . Diomedes, let's all agree that your right, that PSP software is much better then the DS software. The reason why it's losing would be because of price.. which is why the retailers are asking for a price drop.