Archive for November, 2005
This week Aelon.net wrote an article about the XBox launch. Here’s a little taste:
Swing back 3 weeks. I am cruising around the local mall and the Xbox 360 launch fever has just started. I ask the manager of a local EB about word from on high. He says that whenever their store preorders things you get a ballpark from the distributor on how many can be sent (for high demand items). They got the ballpark of about 150 for Xbox 360s. They preordered 200 (telling the last 50 they would probably be in the second wave). Guess how many they get? 30. Ouch. If that is the extent of the production delays Xbox 360 will become the greatest console that no one has.
Head on over to Aelon.net to check out the rest.
Supposedly, according to someone that doesn’t actually make the console, it costs about $470 dollars in parts to make an Xbox 360. Then you have to pay to assemble all those pieces. All told, that means that Microsoft will lose $127 per console sold.
Personally, I don’t think this is such a big deal. Microsoft has so much money in the bank that they could lose money on every Xbox 360 sold from now to eternity and still put it in their “lost in couch” column on their balance sheet.
Besides, this won’t last forever. I have a feeling that this time around, Microsoft has engineered things so that economies of scale and hardware optimizations will eventually allow them to profit on the console, much like Sony has done with the PS2.
Ah, whatever. I don’t think it’s such a big deal. If I had an Xbox 360 it would just go in my component rack with all my other stuff, and it would fit if it was twice as thick.
Just so you know: all those rumours you may have heard on other sites about the price of the PlayStation 3 being between three and four hundred dollars?
See? You gotta trust me on these things. I never reported this stuff ’cause I knew it was fishy.