[Quote=Gamespot]Xbox 360 shortages, $76 per-console-loss predicted.
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Microsoft executive says demand for the new console will outstrip supply; analysts predict company will only charge $299 for $375 worth of hardware.
For the past several months, many gamers looking to pick up an Xbox have found the machine in curiously short supply. Today, a Microsoft executive implied that a similar drought of product may occur later with the company's next-generation game console.
Speaking to British game-industry magazine [URL=http://www.mcvuk.com/newsitem.php?id=271]MCV[/URL] British Xbox boss Neil Thompson said demand could outstrip supply when Xbox 360 launches later this year. "I think demand is going to be phenomenal so we see that as a really difficult thing," he told MCV. "Will we execute well so retail will have good volume? Yes. But I don't think we're going to meet demand as people are going to come into this platform in a big way."
When asked for comment by GameSpot, an official Microsoft spokesperson issued the following silver-tongued response: "We're aware that demand for Xbox 360 will be at a fever pitch, and we're working with our manufacturing partners to ensure that gamers in Europe, North America and Japan will have a great Xbox 360 Christmas this year."
Meanwhile, an analyst report quoted by the Toronto-based newspaper [URL=http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050604/RTICKER04-8/TPBusiness/?query=xbox]The Globe and Mail[/URL] (registration required) claims to answer another burning question regarding the Xbox 360. The tech-savvy Canadian daily cited a report by UBS Securities analysts Patrick Parr and Martin Cecchetto, which estimated that Microsoft "will pay its manufacturing partners about $375 (US) a unit and sell them to consumers for $299."
The Toronto Globe and Mail article also said that Microsoft will pay out "between $350 million and $450 million this year and between $900 million and $1.1 billion in 2006" to manufacturers of the console. Divided by the estimated $375 manufacturing price--which will eventually go down--such expenditures would mean Microsoft expects to ship around 933,000 to 1.2 million Xbox 360s in 2005, with another 2.4 million to 3.2 million going to market in 2006. Multiply those figures by the estimated $76 loss Microsoft will take on each Xbox 360, and the company could lose as much as $91.2 million and $243.2 million on console hardware production in 2005 and 2006, respectively.
However, while the analyst report bears the respectable UBS imprimatur, the figures it contains remain estimates, not official numbers. Unfortunately, that's all the public has to go on at the moment, as Microsoft won't go into the financial specifics of the Xbox 360 launch. "We do not comment on rumors or speculation," said the same spokesperson.
By Tor Thorsen -- Gamespot
POSTED: 06/06/05 05:23 PM PST
Good thing I already pre-ordered mine.
[b]EDIT: Source = http://www.gamespot.com/news/2005/06/06/news_6127039.html[/B]
Seeing as they're already making a killing on operating systems and office software, it shouldn't hurt them too much.
Well it shouldn't really kill them much anyways. They Lost money per each Xbox they sold but they made money overall.
Shortages at launch? That's never happened before. I apologize to anyone allergic to sarcasm. You've probably collapsed in convusions.
...I wasn't going to pay
I'm in no hurry to get one so this does not affect me.
However I hope the people that DO want one on launch will be able to acquire one.[/lie]
Wow. That is almost a 100 Dollar difference. And I've also never heard of shortages at launch until now.
Bast.ards, plotting to get even more of our money. Not like most people wouldn't of paid nearly 400 dollars at launch for a 360 anyway =/
Not that I will, fu.ck that, ridiculous. I don't care how good it is, if it nearly costs as much as a fu.cking computer, it better have a monitor attached to it, a keyboard, mouse, speakers, and 100 gig hardrive. I reitterate, bas.tards.
That's 300 dollars.
[quote]Good thing I already pre-ordered mine.
Ya, same here, of course, I WORK at gamestop, so mine is super cool (well not really) and I might get it a few days early (We get shipments in like 4-5 days before the launch alor of the time.) or with a discount or something. But in any case, mines preordered and ready.
[quote=Sean STARWARS Fury]Well, you have to include the fact that you'll want a game to play on your NON-BACKWARDS COMPITABLE Xbox 360 and maybe even a memory card. That's what, 200 more dollars right there?
So that's a hundred-dollar game and a hundred-dollar memory card?
The people at Gamestop (well, Microsoft) haven't given a price on the system but they told if you pay over the limit (e.g. You pay 350 dollars on the console when it's 300) you can you use the extra 50 to buy a controller, memory card, pay for tax, etc. As for me though I'm not putting more that $150 on the console itself and instead I'm going to pay off the 5 games that I want.
When you go in to pre-order the console it shows a list of games that have been confirmed for the 360 such as PDZ, Oblivion, PGR3, Kameo, GR3, etc. (Those are the 5 games I pre-ordered :)) So I recommend to anyone who is thinking about getting one at launch (Which it seems that not too many people here will) to only put about 150 or may'be 200 on the system and then put money aside for yourself and pay the rest of the system off on launch day.
Even though preordering is always a great idea, I still think it's all ridiculous. Remember what happened with the PS2 and PStwo? Besides, I think I rather wait awhile and see what bugs and stuff turn up (like the faulty power cord for the Xbox) and etc.
It's not called PStwo. ragh.
Eh, no, I don't happen what happened to the PSone and PS2, elaborate. :)
Well you could say that's on Sonys part because our PS2 broke down when we got it at launch. Microsoft on the other hand I haven't heard anything bad about (or else you would've said "Remember what happened when Xbox came out?"). 3 of my friends got it on launch day and theirs still works just like the day they got it, so I fell comfortable with Microsoft. I still know that things change and just because they got it right with Xbox, doesn't mean they will with 360, but it's a chance I'm willing to take.
[quote=Sean STARWARS Fury]Yeah, that just happens to be what everyone refers to it as.
Huh. I happen to refer to you as Dickcheese in private, go figure.
I remember the PS2 launch well. Someone was killed over one outside a Dixons near me.
[quote=Pit]He's referring to the Ps2 remodel... you know, the slimmer and sleeker PSTwo.
Yeah, I know. It's not called PStwo, though, it's just the slim PS2. Or at least that's what it is over in Britland.
**** you.
:(