ok they can use this badass cpu and sell the whole console for 400 bucks..how do they do that? I mean if the cpu were available on the market it would be like 3 grand..god
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ok they can use this badass cpu and sell the whole console for 400 bucks..how do they do that? I mean if the cpu were available on the market it would be like 3 grand..god
This is microsoft were are speaking of. And they are ordering big mass quantities. They are entitled to what we (people who buy just one at a time) would see as a spectacular discount.
Plus microsoft being who they are have connections everywhere not to mention probably own or have invested in production facilities of such hardware.
quantity is a big factor, but even though they still take a loss (prolly $100-$150?) on the sale of each console... their goal isn't to profit from the hardware, but to profit from the software. once you have the machine, you're prolly going to buy games to play on it, accessories, maybe an xbox live subscription...
basically the same strategy that a lot of other electronic media companies are using -- like telephone companies (free phones) and cable/satellite (free dishes and receivers). they take a loss on the hardware 'cause you're going to pay for service/content to use the hardware with.