360 controller parts: $11, or 22% of retail

EETimes has published a very thorough, 3-page, 800-word teardown of Microsoft's wireless Xbox 360 controller. By examining the specific components, the assembly techniques, and extrapolating cost-cutting decisions, the author is able to determine the cost of the hardware. He writes, "Bill-of-material estimates for the wireless controller come in at around $11, or 22 percent of the retail price for the product--a far cry from the negative margin of the console itself."

Assembly, packaging, marketing, and shipping are all other factors not considered here, though it's clear Microsoft intends to use peripheral sales--in addition to software licensing fees--to recoup the massive loss they face with every console sale. A small consolation to anyone who's felt that $50 sting at the cash register. They're lucky the controller is as close to perfect as we've experienced. They say something about the good things in life not being something or another...