Xbox 360 costs $715 to make

by Blake Snow on Dec 28th 2005 9:00AM

Earlier numbers by Business Week may have reported that Microsoft is losing $126 on every Xbox 360 sold. That figure is now believed to be a bit higher by some. According to Insider Scoop, the world's largest software maker is losing upwards of $300 per console sold. From the article: "A high ranking friend at IBM, one that worked on the Xbox 360 chip design, tipped us regarding the real expenses involved in manufacturing the Xbox 360... 'It costs Microsoft approximately $715 to make, the manufacturing costs are still too high, another reason why they’re producing relatively small quantities.'”

If anyone has the money to blow, it's Billsoft. And if true, how long can the company stay in the red?

[Thanks, zADD]

Tags: Xbox-360

Reader Comments (102)

All you guys know NOTHING about business or about sony. Sony does not manufacture cell chips! IBM does, sony does manufacture and will manufacture blue-ray dvd drive. This still does not mean that it will be cheap for them. It is a new technology and will vastly cost more to make the PS3 than the xbox. So people stop making bogus claims when you know nothing!