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Monday, May 7, 2007

Microsoft makes money on each 360 sold: Sony loses big money on each PS3 sold!

I along with many others have been wondering when Microsoft would announce a price cut for their XBOX 360 console.  The Digitimes compiled and published a report that iSuppli put together showing the manufacturing cost's between the XBOX 360 Elite and the 60GB PS3 and the numbers are staggering.

According to iSuppli's report, the XBOX 360 Elite cost's $323.20 to manufacture and that is good news for Microsoft because that means they are making money, not to mention that they could drop the price at any time.  Now it should be noted that the cost doesn't include controllers cables and any other peripherals that are packed with the 360.  Now if iSuppli's list is correct, there wont be any PS3 price drop for a while, not with a manufacturing cost of $840.35.

With Microsoft making $156 per Elite sold and probably more than that if you were to do a break down on the premium and core models, Microsoft has an ace up it' sleeve.  If they feel that Sony is catching up in sales or that the interest is the 360 is declining, Microsoft at a moment's notice can cut the price of the 360.

With Sony losing over $240 per console sold, they absolutely cannot afford a price cut, which means Sony is going to have to start producing good games and hope that the interest in the PS3 grows because if it doesn't they will be is some serious trouble.

Digitimes has a price breakdown of each part found in the PS3 and Elite. 

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