Earlier numbers by Business Week may
have reported that Microsoft is losing $126 on every Xbox 360 sold. That figure is now believed to be a bit higher by
some. According to Insider Scoop, the world's largest software maker is losing
upwards of $300 per console sold. From the article: "A high ranking friend at IBM, one that worked on the Xbox 360
chip design, tipped us regarding the real expenses involved in manufacturing the Xbox 360... 'It costs Microsoft
approximately $715 to make, the manufacturing costs are still too high, another reason why they’re producing
relatively small quantities.'”
If anyone has the money to blow, it's Billsoft. And if true, how long can the company stay in the red?