Thursday, 24 November 2005

Microsoft loses money on each Xbox on Yahoo! News

What's surprising here is not that Microsoft are price dumping (they did that with the original xbox), but the staggering amount: 40% over the retail price - so probably double the wholesale price.

That's a huge grasp for market share, if ever I saw one... it will be interesting to compare to Nintendo and Sony's offerings. Even if Sony's is comparable, I think they have a much larger portfolio of games development companies to lean on to recoup the cost.

Related to this, the first news of Xbox 360 crashes are pouring in. Seems that although Microsoft are addressing security, they're still having problems with robustness.

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