I wonder...
At launch, iSuppli estimated the mainboard for the X360 to cost $370.
See here.Quote
IBM designed and co-manufactures the custom microprocessor that powers the Xbox 360. The microprocessor is a triple-core PowerPC that runs at a frequency of 3.20GHz. At a cost of $106, this single part accounts for 20.2% of the total BOM cost for the Xbox 360 Premium, according to preliminary findings from firm.
Other key semiconductors in the Xbox 360 include the graphics processing unit (GPU), the memory and a Southbridge I/O controller. The GPU, designed by ATI Technologies to provide high-definition (HD) graphics, costs an estimated $141, including embedded DRAM from NEC.
The main memory, 512Mbytes of GDDR DRAM from Samsung Electronics Co. Ltd., accounts for another $65 of the BOM. The SiS Southbridge chip costs an estimated $12. Other semiconductors and electronic components make up the remaining cost of the $370 mainboard.
Now, iSupplies 2006 estimates for mainboard BoM (Bill of materials) are at $204.
As seen here.If true, this means that they were able to lower prices collectively on their ATI NVidia chip which was estimated at $141 originally, their CPU which was estimated at $106 in 2005, and their 512 MB ram cost $65 back then, plus other components. That's a HUGE price reduction and probably a victory for MS' business arm, much like Nintendo was able to get cheap NES chips from RICOH by promising a certain numbers of orders. That could also explain why MS is continueing to pump out consoles far in excess of what they've sold, they're aiming for 10 million shipped when only ~8 can be accounted for as bought. (though maybe their christmas season high sales can alleviate that discrepancy)
Also, notice how the new iSuppli for 2006 estimates do NOT include the wireless/wired controller or assorted packaging/cabling/literature like the earlier 2005 estimates, cutting out an expected ~$32 out of the "updated" end figures.
That said, we're now looking at their $299 model coming in at about $308 to manufacture, including the missing controller, cabling and literature estimates, minus the harddrive and wireless board, and that's just manufacturing cost. Keep in mind that MS must be selling their core packages at about $289 or so (or more) to retailers, making for an estimated $19 loss.
Add the hard drive and wireless costs and we're looking at MS' premium bundle costing around $358 to manufacture, which, it seems is where MS can say they're making money. The premium bundle estimates leave $42 between MS profit, MS additional costs, and retailer profits.
They also bundle whenever consumers who bought the "core" edition upgrade. X360 wireless adapter? iSuppli lists the internal cost for the board in the premium version at $4. The exterior wireless adapter you can buy for the X360 must cost no more than $25 to manufacture on the high end. MSRP is $99. The add-on HDD has the same MSRP.
Of course, none of this includes a bevy of additional costs such as shipping. It also questionably doesn't account for profits to any of the other companies, especially with the estimates labeled "Bill of Materials" suggesting only the material and manufacturing costs.
... MS may be making profits on their premium version, but they're not on their core version. Accounting for hidden costs, they may even be losing money on the premium version. I'll compromise and say that MS is doing a little better than breaking even on their X360 version. And there's no doubt about it, when you buy a Core version and then upgrade either wifi or HDD or both, THEN MS is most definitely making a profit.
~Carmine M. Red
Kairon@aol.com 
Topic: Virtua Fighter 5 for 360!!! (Read 12455 times)
