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Re: [News] [Rival] Microsoft 'Dumps' XBox360s to Survive Nintendo's Momentum

____/ Jim Richardson on Friday 17 August 2007 04:59 : \____

> -----BEGIN PGP SIGNED MESSAGE-----
> Hash: SHA1
> 
> On Thu, 16 Aug 2007 09:22:12 -0700,
>  The Ghost In The Machine <ewill@xxxxxxxxxxxxxxxxxxxxxxx> wrote:
>> In comp.os.linux.advocacy, Jim Richardson
>><warlock@xxxxxxxxxx>
>>  wrote
>> on Wed, 15 Aug 2007 23:28:40 -0700
>><od7dp4-911.ln1@xxxxxxxxxxx>:
>>>
>>> On Wed, 15 Aug 2007 17:09:01 -0400,
>>>  Capt Morgan <rum@xxxxxxxxx> wrote:
>>>>
>>>> "[H]omer" <spam@xxxxxxx> wrote in message
>>>> news:j2oap4-lii.ln1@xxxxxxxxxxxxx
>>>>> Verily I say unto thee, that Roy Schestowitz spake thusly:
>>>>>
>>>>>> MS cuts Xbox 360 prices Down Under
>>>>>>
>>>>>> ,----[ Quote ]
>>>>>> | Microsoft has today slashed the price of the Xbox 360 in Australia,
>>>>>> | bringing the basic Core model down to the same price as Nintendo's
>>>>>> | globally popular Wii console.
>>>>>> `----
>>>>>>
>>>>>> http://www.reghardware.co.uk/2007/08/15/ms_oz_xbox_price_cuts/
>>>>>
>>>>> Good grief! MS were already making a massive loss with this predatory
>>>>> and immorally under-priced "loss leader" *before* the price cut.
>>>>
>>>> Evidently this [M]oron doesn't realize that Microsoft has made a profit on
>>>> every XBox360 they've sold for over a year now. It's Sony that's losing
>>>> HUGE amounts of money on every console they sell.
>>>>
>>>
>>>
>>> An interesting claim, got any evidence that MS is making money on the
>>> Xbox360 hardware sales?
>>>
>>
>>
http://www.techspot.com/news/23612-microsoft-makes-tiny-profit-on-xbox-360-hardware.html
>>
>>     Through reduction in manufacturing costs, Microsoft
>>     has managed to bring the cost of the Xbox 360 to a
>>     zero loss, if not a slight profit.
>>
>> (One wonders if this is before or after the little problem
>> relating to the console overheating.  The article is dated
>> Nov 2006.)
>>
>> --
>> #191, ewill3@xxxxxxxxxxxxx
>> Useless C++ Programming Idea #992381111:
>> while(bit&BITMASK) ;
>>
> 
> 
> Not to mention the $1,000,000,000 charge they took against Xbox360 to
> pay for extending the warranty period on the ones dying by the score.
> 
> So I'd say that no, the Xbox360 is not making MS any profit on the HW
> sales. unless they ignore the cost side of the ledger entirely.

Remember, Jim, that it's not about /making/ money, but it's about making sure
your rivals cannot make any until they run out of business. Intel uses similar
tactics to ensure AMD is unable to innovate, let alone gain market share. They 
play with their pockets, not with their skills.

-- 
                ~~ Best of wishes

Roy S. Schestowitz      | Linux: most popular O/S, yet not most widespread
http://Schestowitz.com  |    RHAT Linux     |     PGP-Key: 0x74572E8E
 06:20:01 up 10 days,  9:13,  5 users,  load average: 2.65, 2.91, 2.69
      http://iuron.com - Open Source knowledge engine project

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