360’s Sacrificial Plunge
April 28th, 2007 by Gibran Nawaz in Business, Hardware, Xbox360
We all know that the majority of game console manufacturers lose a significant amount of money when producing a system, and hope to make up the loss of profit with sales of software titles. Microsoft is a company that uses this method of marketing strategy. In a recent Entertainment and Devices Division report for this quarter, their losses show a drop in operating costs by $100 million.
This is actually due to less systems being made, as shipments have also decreased as demand for the system has decreased. Most potential buyers have already bought an Xbox 360, and those who are currently waiting for the Elite are going to have to grab some of the limited supply. This is also an effect of increased sales of portable devices of Microsoft, so it’s important not to only look at the gaming department. Profit loss is predicted to be even lower next quarter.
Read (arstechnica)
Tags: Business, Hardware, Xbox360
April 29th, 2007 at 1:35 am
I was going to get the Elite, but decided on Guitar Hero II for the 360 instead
April 29th, 2007 at 9:54 am
Dustin! Smart, you got yourself a throughly addictive and fun game and the only real thing you’re missing out on is HDMI and a larger hard drive. You can always skin your X360 for a few bucks, buy a USB drive, or new larger drive you can just put the 20gig housing. People do this all the time.
At least you have Component Connection for HD output. PS3 doesn’t have a choice, it’s either low res component or HDMI! ..and that HDMI is new version which cripples playing games in higher res.
I would say you made a great dicision and saved a bunch! If it’s not broken, why Fix It?