Xbox 360 estimated to cost Microsoft $200 per console sold

The cutthroat console business has no mercy as Microsoft continues to lose an estimated $200 per Xbox 360 sold, discounting the cost of marketing and distribution. Common sense adds up the cost of the hard drive and materials within the Xbox costs $470 before assembly, while the power supply, cables, and controllers increase the cost by another $55 after factoring in the bulk discount on many components. No worries for the Redmond giant as their billions from OS and Office sales are more than sufficient to subsidize this amount. Microsoft should get this money back (and more) on licences fees on every game sold. Via First Adopter