Quote Originally Posted by TheVitaleMob
This question quickly has no meaning (no offense) considering the fact that the XBox360s actually cost around $550 just in parts to make. Microsoft makes money from the games and the Xbox Live service. Also, video game wholesale is around 90% of the retail cost. This is why most retailers sell used games as well; the profit margin in used games/consoles is higher than new. Msoft is probably making money on partnership deals to allow certain types of online retailers onto XLive as well, such as music or video downloading sites. (All of this information is off the top of my head from magazine articles, mostly from GameInformer; subject to verification)

As a side note, when the Nintendo GameCube came out in the US, they were actually manufactured in Japan. Mass shipping problems contributed to a huge release shortage that time. Not always the company's fault.

Microsoft has yet to turn profit on the Xbox since its release. I think thats crazy. Since game contracts are where the money is at. It's been hard to take anything away from Sony. Now the box rivals the PS2, and I hope it has a lot of success. I enjoy the PS2 more for one reason, and thats Socom. A game that will never be released on Xbox since its made by Sony. So good luck to Xbox.