Go Back   nV News Forums > Software Forums > Gaming Central > Console World

Newegg Daily Deals

Reply
 
Thread Tools
Old 06-06-05, 05:08 PM   #1
Bad_Boy
god of war.
 
Bad_Boy's Avatar
 
Join Date: Apr 2004
Location: greensboro, nc.
Posts: 2,911
Send a message via AIM to Bad_Boy
Default $75 lost for each 360?

http://www.gamesindustry.biz/content_page.php?aid=9320

i do hope they charge that though, id definately buy a xbox360 for 300.
__________________
[PS ID: Bad_Boy]
Bad_Boy is offline   Reply With Quote
Old 06-06-05, 05:16 PM   #2
GlowStick
CoD4!
 
GlowStick's Avatar
 
Join Date: Feb 2003
Location: Florida
Posts: 5,786
Send a message via AIM to GlowStick
Default Re: $75 lost for each 360?

Sounds reasonable for the buying power Microsoft has. Raw material + labor.
__________________
Intel i7-2600K, Corsair 8Gig, Corsair H100, Corsair 650D, Corsair HX750, ATi 6970, WD Caviar Black 2TB
Sony Vaio SB: i7, 8Gig, Intel 320 300gig
GlowStick is offline   Reply With Quote
Old 06-06-05, 05:31 PM   #3
vX
 
vX's Avatar
 
Join Date: Apr 2005
Posts: 508
Default Re: $75 lost for each 360?

$75 lost per system $20 gained on hundreds of titles =)
vX is offline   Reply With Quote
Old 06-06-05, 06:03 PM   #4
Edge
3d animator for hire!
 
Edge's Avatar
 
Join Date: Oct 2002
Location: Minnesota, USA
Posts: 3,564
Default Re: $75 lost for each 360?

Seems about right, on the Xbox they were losing around $100 per console sold at launch. It seems they definately want to stay competative, for a while there I was afraid they would be cutting costs by not including a harddrive and such.
Edge is offline   Reply With Quote
Old 06-06-05, 09:54 PM   #5
AthlonXP1800
Registered User
 
AthlonXP1800's Avatar
 
Join Date: Jan 2003
Location: United Kingdom
Posts: 4,352
Default Re: $75 lost for each 360?

That not very good news for Microsoft, they still continue to lose money on Xbox since the launch in 2001. They celebrated the first ever profit of $150m in Jan 2005 helped by the big success of Halo 2 and they believed they are back on track making profit throughout the year but the next quarter saw the profit fell back into the red with $300m loss, that the same loss Microsoft lose every quarterly for the last 4 years since launch. When Xbox 360 will launch this year, Microsoft will had around $4.4bn loss total for every quarters and $350m profit a quarter 4 years on with Xbox. That too bad, Microsoft will do the same thing with Xbox 360 and probably will make a profit for a quarter around in 2009.
__________________
Intel Core i7 3770K, Corsair H80 liquid cooler with Noctua S12-1200 fan, ASUS P8Z77V with UEFI 2104, 16GB Samsung Green 30nm DDR3-RAM, Pioneer BDR-S09XLT 16x Blu-ray writer, Corsair AX850 PSU, Western Digital 2TB SATA3 hard drive, CanonScan LiDE 210 scanner, Microsoft Internet Keyboard, Microsoft Touch Explorer mouse, 32inch Sharp LC32LE600 LED TV, EVGA Geforce GTX 670 SC 4GB with Geforce 370.50 driver, 50Mb broadband Virgin Media VMDG480 Super Hub, Aspire Xplorer Midi Tower, Windows 8.1 Pro 64bit.
AthlonXP1800 is offline   Reply With Quote
Old 06-06-05, 10:04 PM   #6
Ruined
Registered User
 
Ruined's Avatar
 
Join Date: Jul 2003
Posts: 2,447
Default Re: $75 lost for each 360?

Quote:
Originally Posted by Bad_Boy
http://www.gamesindustry.biz/content_page.php?aid=9320

i do hope they charge that though, id definately buy a xbox360 for 300.
better than the $175 they lost on each xbox1
__________________
We're all in it together.

Intel Core 2 Quad Q6700 2.66GHz CPU | Intel G965WH mobo | 8GB (4x2GB) DDR2-667mhz CAS5 RAM (1066MHz FSB) | BFG GeForce 285 GTX OC 1GB | Dell E228WFP 22" DVI-HDCP LCD Monitor | 1TB Western Digital RE3 SATA2 Main Drive | 500GBx2 Western Digital RE3 SATA2 Scratch Drives in RAID0 | Western Digital RE3 1TB SATA2 Media Drive | External 2TB Western Digital MyBook Backup Drive | Adaptec eSATA 3.0gbps PCI-E interface | Sandisk External 12-in-1 Flash Card Reader | LG GGC-H20L HD DVD/BD reader, DVD writer | LG GGW-H20L HD DVD/BD reader, DVD/BD writer | Microsoft E4000 Ergonomic Keyboard | Logitech Trackman Wheel | Antec P182 ATX Case | Thermaltake ToughPower XT 850w modular PSU | KRK RP-8 Rokit Studio Monitors | Windows Vista Ultimate x64
Ruined is offline   Reply With Quote
Old 06-06-05, 10:58 PM   #7
AthlonXP1800
Registered User
 
AthlonXP1800's Avatar
 
Join Date: Jan 2003
Location: United Kingdom
Posts: 4,352
Default Re: $75 lost for each 360?

Quote:
Originally Posted by Ruined
better than the $175 they lost on each xbox1
I thought it was $75 to $100 loss on each Xbox.

I read in other forums, many think the real cost Microsoft will lose on each Xbox 360 are $200 because it not mentioned many other manufacturers charges fee like TSMC and others. Microsoft probably will pay TSMC around $50 for each R500 chips plus around $25 to NEC for eDRAM and $5 to $10 to ATI for royality per chip.
__________________
Intel Core i7 3770K, Corsair H80 liquid cooler with Noctua S12-1200 fan, ASUS P8Z77V with UEFI 2104, 16GB Samsung Green 30nm DDR3-RAM, Pioneer BDR-S09XLT 16x Blu-ray writer, Corsair AX850 PSU, Western Digital 2TB SATA3 hard drive, CanonScan LiDE 210 scanner, Microsoft Internet Keyboard, Microsoft Touch Explorer mouse, 32inch Sharp LC32LE600 LED TV, EVGA Geforce GTX 670 SC 4GB with Geforce 370.50 driver, 50Mb broadband Virgin Media VMDG480 Super Hub, Aspire Xplorer Midi Tower, Windows 8.1 Pro 64bit.
AthlonXP1800 is offline   Reply With Quote
Old 06-06-05, 11:22 PM   #8
Ruined
Registered User
 
Ruined's Avatar
 
Join Date: Jul 2003
Posts: 2,447
Default Re: $75 lost for each 360?

Quote:
Originally Posted by AthlonXP1800
I thought it was $75 to $100 loss on each Xbox.

I read in other forums, many think the real cost Microsoft will lose on each Xbox 360 are $200 because it not mentioned many other manufacturers charges fee like TSMC and others. Microsoft probably will pay TSMC around $50 for each R500 chips plus around $25 to NEC for eDRAM and $5 to $10 to ATI for royality per chip.
It was confirmed at $175 at launch for XBOX1 by one of the financial sources I read recently.

MS losing $75 on each xbox360 means just that, they will lose $75 per console, no more, no less.

So, MS did a good job in trimming their loss by $100 for this generation. Plus, they are in better position to reduce costs in the future as they are not stuck in the chip contract with Nvidia this round.

This is also part of the $75 lost:
from gamesindustry.biz

"Some details have trickled out, though, courtesy of Wedbush Morgan Securities analyst Michael Pachter. In a recent research note, Pachter confirms that Microsoft "has agreed to pay a small royalty to Nvidia to allow the Xbox 360's ATI chipset to emulate the performance of the Nvidia chipset in reading certain Xbox games." Nvidia, therefore, will not only be receiving royalties from its partnership with Sony for the PS3, but it will also still get small payments from Microsoft for every 360 despite the fact that Nvidia is no longer the GPU provider."
__________________
We're all in it together.

Intel Core 2 Quad Q6700 2.66GHz CPU | Intel G965WH mobo | 8GB (4x2GB) DDR2-667mhz CAS5 RAM (1066MHz FSB) | BFG GeForce 285 GTX OC 1GB | Dell E228WFP 22" DVI-HDCP LCD Monitor | 1TB Western Digital RE3 SATA2 Main Drive | 500GBx2 Western Digital RE3 SATA2 Scratch Drives in RAID0 | Western Digital RE3 1TB SATA2 Media Drive | External 2TB Western Digital MyBook Backup Drive | Adaptec eSATA 3.0gbps PCI-E interface | Sandisk External 12-in-1 Flash Card Reader | LG GGC-H20L HD DVD/BD reader, DVD writer | LG GGW-H20L HD DVD/BD reader, DVD/BD writer | Microsoft E4000 Ergonomic Keyboard | Logitech Trackman Wheel | Antec P182 ATX Case | Thermaltake ToughPower XT 850w modular PSU | KRK RP-8 Rokit Studio Monitors | Windows Vista Ultimate x64
Ruined is offline   Reply With Quote

Old 06-06-05, 11:37 PM   #9
AthlonXP1800
Registered User
 
AthlonXP1800's Avatar
 
Join Date: Jan 2003
Location: United Kingdom
Posts: 4,352
Default Re: $75 lost for each 360?

Hmmm Nvidia probably will get $1 to $2.50 royality from each Xbox 360. By 2011, Nvidia will make total revenues between $10bn to $20bn royalty if Sony can break 90 to 180 millions PS3 mark. And make around $20m to $50m royalty from Xbox 360 if it reach 20 million units sold.
__________________
Intel Core i7 3770K, Corsair H80 liquid cooler with Noctua S12-1200 fan, ASUS P8Z77V with UEFI 2104, 16GB Samsung Green 30nm DDR3-RAM, Pioneer BDR-S09XLT 16x Blu-ray writer, Corsair AX850 PSU, Western Digital 2TB SATA3 hard drive, CanonScan LiDE 210 scanner, Microsoft Internet Keyboard, Microsoft Touch Explorer mouse, 32inch Sharp LC32LE600 LED TV, EVGA Geforce GTX 670 SC 4GB with Geforce 370.50 driver, 50Mb broadband Virgin Media VMDG480 Super Hub, Aspire Xplorer Midi Tower, Windows 8.1 Pro 64bit.
AthlonXP1800 is offline   Reply With Quote
Old 06-07-05, 01:39 AM   #10
Bad_Boy
god of war.
 
Bad_Boy's Avatar
 
Join Date: Apr 2004
Location: greensboro, nc.
Posts: 2,911
Send a message via AIM to Bad_Boy
Default Re: $75 lost for each 360?

http://www.gamespot.com/news/2005/06...s_6127039.html
Quote:
Meanwhile, an analyst report quoted by the Toronto Globe and Mail (registration required) claims to answer another burning question regarding the Xbox 360. The tech-savvy Canadian daily cited a report by UBS Securities analysts Patrick Parr and Martin Cecchetto, which estimated that Microsoft "will pay its manufacturing partners about $375 (US) a unit and sell them to consumers for $299."

The Toronto Globe and Mail article also said that Microsoft will pay out "between $350 million and $450 million this year and between $900 million and $1.1 billion in 2006" to manufacturers of the console. Divided by the estimated $375 manufacturing price--which will eventually go down--such expenditures would mean Microsoft expects to ship around 933,000 to 1.2 million Xbox 360s in 2005, with another 2.4 million to 3.2 million going to market in 2006. Multiply those figures by the estimated $76 loss Microsoft will take on each Xbox 360, and the company could lose as much as $91.2 million and $243.2 million on console hardware production in 2005 and 2006, respectively.

However, while the analyst report bears the respectable UBS imprimatur, the figures it contains remain estimates, not official numbers. Unfortunately, that's all the public has to go on at the moment, as Microsoft won't go into the financial specifics of the Xbox 360 launch. "We do not comment on rumors or speculation," said the same spokesperson.
with the next gen games being 60 dollars a pop (unfortunately for us), it should be a bit easier to make up in software sales.
__________________
[PS ID: Bad_Boy]
Bad_Boy is offline   Reply With Quote
Old 06-07-05, 12:11 PM   #11
evilchris
 
evilchris's Avatar
 
Join Date: Nov 2003
Location: San Diego, CA
Posts: 4,411
Default Re: $75 lost for each 360?

Quote:
Originally Posted by AthlonXP1800
Hmmm Nvidia probably will get $1 to $2.50 royality from each Xbox 360. By 2011, Nvidia will make total revenues between $10bn to $20bn royalty if Sony can break 90 to 180 millions PS3 mark. And make around $20m to $50m royalty from Xbox 360 if it reach 20 million units sold.
Why would NV get royalties from Xbox 360....
__________________
[CENTER][SIGPIC][/SIGPIC]
[/CENTER][B][CENTER]--Communist Party of America--[/CENTER][/B]
evilchris is offline   Reply With Quote
Old 06-07-05, 12:22 PM   #12
superklye
 
Join Date: Jul 2004
Location: MKE
Posts: 13,629
Default Re: $75 lost for each 360?

Quote:
Originally Posted by steeda
Why would NV get royalties from Xbox 360....
Read above. MS is paying a small royalty for emulation of nVIDIA hardware.
superklye is offline   Reply With Quote
Reply


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


Similar Threads
Thread Thread Starter Forum Replies Last Post
Lost Planet 3 Footage Raises Some Eyebrows News Archived News Items 0 05-23-12 02:10 PM

All times are GMT -5. The time now is 10:16 PM.


Powered by vBulletin® Version 3.7.1
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright 1998 - 2014, nV News.