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Microsoft sells Xbox below production costs

Microsoft sells Xbox below production costs

As the Inquirer reports, Microsoft has to accept a loss of 750 million US dollars in the current fiscal year, which ends on June 30th. Next year it should be as much as 1.1 billion US dollars. Not least because Microsoft should lose US $ 150 on every Xbox sold.

In order to be able to keep up in the game console market, Microsoft should sell the Xbox for less than the production costs. The production of the Playstation 2 Sony is said to cost around 185 US dollars, while Microsoft has to spend almost twice as much, exactly 350 US dollars, for its Xbox. Probably to keep the loss within limits, Microsoft has also decided to use an nVidia graphics chip in the Xbox.