I don't understand how building the X1 cost almost as much as the retail price

#1DepreceV2Posted 5/14/2014 10:37:58 AM
I don't understand how this is possible... I really don't. It baffles me. It also baffles me that Microsoft would release a console that was, apparently, so expensive to make that they break even saling it. I just don't see the overall logic in that and I don't see how it is possible for the console to cost that much to make.
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It's amazing how every time you open your mouth you prove you're an idiot! ~Vegeta
#2MJFJDPosted 5/14/2014 10:40:07 AM
most consoles have been loss leaders. The profits come from software and subscriptions.
#3kennyynnooPosted 5/14/2014 10:44:03 AM
DepreceV2 posted...
I don't understand how this is possible... I really don't. It baffles me. It also baffles me that Microsoft would release a console that was, apparently, so expensive to make that they break even saling it. I just don't see the overall logic in that and I don't see how it is possible for the console to cost that much to make.


They want you to buy the console, they break even but you might need controllers, other things, then accessories, then you need games and subscriptions.....that's where the money is made. The ps4 I believe loses money on each sale. If they sold consoles for profit they would be $600 probably and then you might as well buy a pc with more power.
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Xbox one, PS3, Wii
Play for the games not the evil corporation, they're all evil in the end.
#4DepreceV2(Topic Creator)Posted 5/14/2014 10:44:34 AM
MJFJD posted...
most consoles have been loss leaders. The profits come from software and subscriptions.


The PS3 made enough money off of the optional Playstation subscriptions to make money? I'm sure they make money off of the controllers and such. It's just that people keep bringing up that the X1 is losing money like the PS4 is making quite the profits off of the console itself.
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It's amazing how every time you open your mouth you prove you're an idiot! ~Vegeta
#5MJFJDPosted 5/14/2014 10:46:33 AM
DepreceV2 posted...
MJFJD posted...
most consoles have been loss leaders. The profits come from software and subscriptions.


The PS3 made enough money off of the optional Playstation subscriptions to make money? I'm sure they make money off of the controllers and such. It's just that people keep bringing up that the X1 is losing money like the PS4 is making quite the profits off of the console itself.


PS4 is not enjoying a profit margin for the hardware.