[QUOTE="04dcarraher"]Lol your so full of it, Xbox is over 90% of their entertainment division, as you can see every start of a new console MS has made is has been a money pit , which is why the next xbox will be cheaply made using off the shelf parts that are not high teir. MS wants to get away from loosing money and create a console at the very least break even on profit. A money pit? Again that chart proves nothing about Xbox Console profitability per console sold. I already provided a link which discuses nothing but Xbox hardware costs! Which is what were arguing about kid. MS was losing $125 per Xbox sold at launch, and than was turning a $75 dollar profit within a year. That is a $200 dollar drop in manufacuring costs in 12 months! Average out that $200 dollar difference between 12 months and that's a $17 dollar deduction in manufacturing costs per month in the first year. So they probably broke even after 8 months. They shipped about 4 million consoles TOPS in those 8 months, and they lost about an average of $100 per console in those 8 months. 4 million sold at $100 loss each is 400 million in loses which are directly related to manufacturing costs and the retail price of the console. Of course this doesn't take into account the billions in advertising costs and the billion in RROD replacements. But loses coming directly from manufacturing costs was in no way over $500 million in the first year, and has since been turning a profit. That is not true at all... http://kotaku.com/280578/microsoft-still-losing-big-bucks-on-xbox-division?tag=gamingdeeppockets On July 2007 MS reported a 1.86 billion loss,1 billion was from the extended warranty,the other almost 890 millions were normal loss,and that was almost 2years after the 360 was out,and that doesn't include the 1.26 billion loss from 2005 to 2006. http://www.videogamesblogger.com/2006/10/13/microsoft-lost-126-billion-launching-the-xbox-360.htm This info is well know in fact MS own expectation were to actually get out of the red by 2008,almost 3 years after the 360 was out. http://www.gamespot.com/news/bach-gaming-to-turn-a-profit-for-microsoft-in-fiscal-08-6154809 It was reported by this own site,and is clear that even on 2007 still MS was bleeding money. MS loss more than 7 billion dollars from 2001 to 2007 in the xbox division,which i am sure they have not get yet back,sure they are making profits since 2008,but they haven't make out of the 7 billions they loss total. Another thing cutting cost of hardware is something were MS will never ever beat sony,sony is a hardware maker MS is not,they have to pay to have things made,no matter how cheap you get it in bulks,it would never beat what a manufacture can save them self by doing their own things.
[QUOTE="GioVela2010"] That has nothing to do with profit per console sold vs manufacturing cost. Xbox is not the only Entertaiemt device, and most of those Loses are from before Xbox 360GioVela2010