Friday, July 28, 2006

Xbox 360 Going to Profit in 2008

The Microsoft Xbox 360 was the first entirely custom Microsoft hardware ever made. Many people have blaimed the 4 billion dollar loss on the Xbox due to the 3rd party companies controlling the costs. The Xbox continues to lose money on every unit sold. Fortunately for Microsoft, the Xbox 360's build cost has been lowered dramatically already, with Premium units losing $126 per console at launch now down to about $90 just a few months later. Microsoft is already making plans with Taiwan manufacturers to cut about 20% of the cost, making the Xbox lose only a few dollars per console, before the GPU and CPU are switched to 65nm manufacturing process. Robbie Bach has stated that although he expects the Xbox 360 to lose money through 2007 but that the console and games division should be profitable from early 2008 on.

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