Microsoft cuts Xbox 360 production cost by 40 percent

Posted on Wednesday, November 22 2006 @ 4:10 CET by Thomas De Maesschalck
A new analysis from market research firm iSupply found that Microsoft is now earning money on the sales of its Xbox 360 consoles.

Since the launch of the Xbox 360, Microsoft managed to cut the production price of its console by nearly 40%.
According to iSuppli’s most recent analysis, the premium version of the Xbox 360 game machine equipped with hard disk drive has a manufacturing and materials total of $323.30, based on an updated estimate using costs in the fourth quarter of 2006. This total is $75.70 less than the $399 suggested retail price of the Xbox 360. Even though it is obvious that Microsoft still has to subtract freight, toll, retail partner’s profit and other possible charges, it is highly likely that Microsoft has either managed to reduce its loss to minimal, or is making a tiny profit selling the $399 flavour of the Xbox 360.

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