XBox 360 to be Profitable by Summer 2006
According to Ars Technica, Microsoft is betting on the summer Halo 3 drop to bring their xBox 360 into the black. Right now, every sale may be losing as much as $126 per xbox sold. I quote:
Only Nintendo, which relies on video game sales as its primary source of income, has maintained consistent profitability on the sales of their consoles.
I am not sure, then, who *is* making money off their xboxes. Software developers with smash titles and low in house costs may, but how does Microsoft win? It’s losing gobs of money entering this arena…
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One Response to “XBox 360 to be Profitable by Summer 2006”
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Microsoft, like the rest of the console devs, makes money off of royalties from games and accessories.
Microsoft, for instance, has a racket going with Xbox 360 accessories. If you want to sell a controller or what not for the XBox 360, you have to had MS a chunk of your sales. They even have security features to make sure that you pay up.