Xbox 360 Costs $552 to Manufacture

November 24th 2005 | Games Consoles

The cost of building a Microsoft Corp. Xbox 360 video game console is nearly 40 percent higher than the retail price, technology and microchip research company iSuppli said on Wednesday. The firm estimated the total cost to manufacture and test a premium Xbox 360, the software giant’s sleek and powerful new gaming machine, which debuted on Tuesday, was $552.27, compared with its retail price of $399.

Console makers have historically subsidised manufacturing costs by creating and selling their own video games and by collecting fees from publishers who make titles for their systems. Several new Xbox 360 games are priced as high as $60.

Reuters - Microsoft loses money on each Xbox

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Xbox 360 Costs $552 to Manufacture
Published in: Games Consoles on 2005-11-24