Microsoft loses $300 on each Xbox 360 sold

28 December 2005
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Bummers… I mean… 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’.”

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