Doesn't the 360 cost more to manufacture than the Wii? This may be good for consumers, but this can't be good for Microsoft's bottom line. How many console generations is Microsoft going to lose money before they'll start making profits like Nintendo? Are they even trying to make money anymore, or is everything just about taking over other markets (game consoles, iPod, etc) at any cost.
Traditionally, console makers have sold consoles at a loss and made money from game sales. Haven't you noticed how much games cost for the current gen systems? It's a bit like the cell phone business: you pay relatively little for the phone up front, but they make it back (and more) via monthly fees. It's subsidized. That's even more the case for the Xbox 360 where you not only pay high prices for games, but they actually do have a monthly fee for the online service (and who's going to have an Xbox360 without online service?)
Anyone remember street fighter II for SNES, that was like $125? When great games like gears war, bioshock, ace combat 6 and PGR4 can be picked up for $30 or less, I wouldn't say this generation is expensive, the market is so fast moving, games get discounted within weeks of being out, best gen in my opinion for price cuts
Evan - "Doesn't the 360 cost more to manufacture than the Wii?"
Yes it does, but when you look at the fact that the Wii only costs between $150 and $200 to make each unit there is a lot of wiggle room for Microsoft to actually sell their units at a slight loss because it doesn't cost that much more to make the 360 Arcade than the Wii. Remember the Arcade is missing the $100+ hard drive, which costs MS $50-75 to make.
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Doesn't the 360 cost more to manufacture than the Wii? This may be good for consumers, but this can't be good for Microsoft's bottom line. How many console generations is Microsoft going to lose money before they'll start making profits like Nintendo? Are they even trying to make money anymore, or is everything just about taking over other markets (game consoles, iPod, etc) at any cost.
Trust me, Microsoft is not as stupid as you think. It's a long term investment. I'm pretty positive the 360 is pushing a profit anyways.
Traditionally, console makers have sold consoles at a loss and made money from game sales. Haven't you noticed how much games cost for the current gen systems? It's a bit like the cell phone business: you pay relatively little for the phone up front, but they make it back (and more) via monthly fees. It's subsidized. That's even more the case for the Xbox 360 where you not only pay high prices for games, but they actually do have a monthly fee for the online service (and who's going to have an Xbox360 without online service?)
Anyone remember street fighter II for SNES, that was like $125? When great games like gears war, bioshock, ace combat 6 and PGR4 can be picked up for $30 or less, I wouldn't say this generation is expensive, the market is so fast moving, games get discounted within weeks of being out, best gen in my opinion for price cuts
Evan - "Doesn't the 360 cost more to manufacture than the Wii?"
Yes it does, but when you look at the fact that the Wii only costs between $150 and $200 to make each unit there is a lot of wiggle room for Microsoft to actually sell their units at a slight loss because it doesn't cost that much more to make the 360 Arcade than the Wii. Remember the Arcade is missing the $100+ hard drive, which costs MS $50-75 to make.