Proof that it's not BS please? And dont give me some estimates by some analyst who knows nothing about how things go in the factory.Besides it's only logical.You can build a PC much more powerful than the 360 for the same price.Yes it doesnt have the labour cost of making a console in one piece but we are talking about individual components on which the company makes a substantial profit since they only make profit on hardware and they dont produce in as much bulk quantity as the consoles.And to top it off it is much more powerful than the console for the same price.
I mean if an 8800GS is selling for $70 meaning it is obviously much cheaper to manufacture then how much you think the 360 GPU costs to manufacture which is twice weakerand is produced more than any other PC GPU meaning more economies of scale?
Spybot_9
The beauty of it is I don't have to prove a negative. You made the statement, I asked for proof. It's been common knowledge for quite some time that (at first, until prices come down) consoles are sold at a loss. It didn't become common knowledge just because it was posted by some troll on an internet message board. If you want to prove your point, then post some damn proof.
And the thing is, all of the companies that make the individual parts of consoles (CPUs, graphics cards, etc) sell their parts for profit because they don't make the money back on software the way Sony/MS do.
So, let's say I make a console that has that $70 8800GS in it. To make profit, I'd have to add at least $71 to the price of the console. If you add up the cost of all the parts that go into a console, plus the cost of: R&D, mass production, advertising, etc. you'd have to sell one expensive console to break even. It makes much more sense to sell at a loss, get the install base, and make money back on software. That's why consoles are originally sold at a loss.
Of course, I'm not an expert, so I could be wrong. But you made the statement, so you have to prove it.
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