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Re: Death of the Xbox?
Posted By: ferrexDate: 5/21/02 1:24 p.m.

In Response To: Re: Death of the Xbox? (Kanen Faud'r)

: Loss per XBox console sold: ($85)

This is probably generous at the moment, but I see no reason the price can't come down to around $150 per console in time.

The most expensive components are the CPU (Intel might be stingy about the pricing) and the HD and DVD drives (either of which I doubt will never drop below $50). That said, I don't think they need to push too hard on the HD, since the add on HD on competing consoles is an added cost anyway, but I imagine market pressures might compel them to.

: Profit per first party game sold: $20

If a game retails for around $50, I daresay the profit is greater than this. Stamping a DVD, plus a DVD case, plus S&H doesn't amount to $30--I would be surprised if it amounted to $10.

For first party titles, at their launch, I would peg the profit closer to $40. And given the Xbox's high attach rate (around 4.0 last time I saw figures), that does add up to a significant portion of the lost price.

: Profit per hardware accesory sold: $5
: Profit per third party game sold: $5

Afraid I don't have any information about these margins, but your estimates seem appropriate.

Right now, the best selling Xbox titles are first party (Halo, PGR, et cetera). Feel free to call me if you think I'm exaggerating, but I expect the average case is something like this:

2 First party titles: $80
2 3rd party titles: $10
1 Extra controller: $5
1 Memory card: $5

$100 is nothing to sneeze at. Some people will be buying more than one controller, too. The ratio of first to third party games may vary quite a bit, though, but currently Halo and PGR are way out in the lead in terms of units sold.

Cheers,
rex


Message Index




Replies:

Death of the Xbox?FunkDaddy 5/20/02 4:34 p.m.
     Re: Death of the Xbox?PCDestroyer 5/20/02 4:46 p.m.
           Re: Death of the Xbox?Surrepticius 5/20/02 4:58 p.m.
                 Death of the Xbox??...My @$$Mutti 5/20/02 6:48 p.m.
                       Re: Death of the Xbox??...My @$$Mr. Bobo 5/20/02 8:07 p.m.
     Re: Death of the Xbox?ferrex 5/20/02 6:03 p.m.
           Hurrah!Kellen Squire 5/20/02 11:00 p.m.
           Re: Death of the Xbox?Kanen Faud'r 5/21/02 3:12 a.m.
                 Re: Death of the Xbox?ferrex 5/21/02 1:24 p.m.
                       Re: Death of the Xbox?Kanen Faud'r 5/21/02 2:12 p.m.
                             What about the profits from...Ulf 5/21/02 3:08 p.m.
                       Gross vs. ProfitNarcogen 5/21/02 10:39 p.m.
                             Re: Hard DriveNthDegree256 5/21/02 11:12 p.m.
                                   Re: Hard DriveNthDegree256 5/21/02 11:13 p.m.
                                   hard drive vs. memory cardNarcogen 5/22/02 1:38 a.m.
                                         Re: hard drive vs. memory cardMark Levin 5/22/02 1:46 a.m.
                                               nice feature, just not essentialNarcogen 5/22/02 4:39 a.m.
                                         Re: hard drive vs. memory cardMiguel Chavez 5/22/02 1:51 a.m.
                                               Re: hard drive vs. memory cardpoena.dare #CP# 5/22/02 2:23 a.m.
                                                     Re: hard drive vs. memory cardMark Levin 5/22/02 3:21 a.m.
                                                           DVD Consortium ChargesNarcogen 5/22/02 4:48 a.m.
                                                                 Re: DVD Consortium ChargesLouis Wu 5/22/02 8:30 a.m.
                                                                       Re: DVD Consortium ChargesNarcogen 5/23/02 1:33 a.m.
                                                                             Re: DVD Consortium ChargesMark Levin 5/23/02 2:15 a.m.
                                                                                   Re: DVD Consortium ChargesNarcogen 5/23/02 3:05 a.m.
                                                                                         Re: DVD Consortium ChargesMark Levin 5/23/02 3:09 a.m.
                                                                                               Re: DVD Consortium ChargesNarcogen 5/24/02 4:14 a.m.
                                                     xbox as music playerNarcogen 5/22/02 4:45 a.m.
                                               The Console CaveNarcogen 5/22/02 4:42 a.m.
                                         Re: hard drive vs. memory cardSpudBoy 5/22/02 1:52 a.m.
                                               PGR ghosts and Myth FilmzNarcogen 5/22/02 5:04 a.m.
                             Re: Gross vs. Profitvector40 5/21/02 11:28 p.m.
                                   Grosse Profit PointeNarcogen 5/22/02 1:44 a.m.
                             Re: Gross vs. ProfitMiguel Chavez 5/22/02 1:22 a.m.
                                   Profit vs. RevenueNarcogen 5/22/02 1:52 a.m.
           Doomsayers vs MS Kool-AidNarcogen 5/21/02 9:38 p.m.
                 Re: Doomsayers vs MS Kool-AidKellen Squire 5/21/02 10:57 p.m.
                       Kool Aid vs FUDNarcogen 5/22/02 4:18 a.m.
                             *blink*Kellen Squire 5/22/02 6:29 p.m.
                                   Well, uh banshee "challenge" *NM*Black_Jackal 5/22/02 6:47 p.m.
                                         WHAT THE !@#$!Black_Jackal 5/22/02 6:51 p.m.
                                               Re: WHAT THE !@#$!Narcogen 5/23/02 2:40 a.m.
                                   SUPERFUD! :)Narcogen 5/23/02 2:38 a.m.
                                         Dratness!Kellen Squire 5/23/02 8:30 a.m.
                                         Re: SUPERFUD! :)Kellen Squire 5/23/02 9:43 a.m.
                                               Good Grief, this is great. *NM*vector40 5/23/02 9:25 p.m.
                                               Re: SUPERFUD! :)Narcogen 5/24/02 4:09 a.m.
                                         Re: SUPERFUD IS FINALLY REPLIED TOKellen Squire 5/24/02 12:23 a.m.
                                               Jesus.Zapf Dingbats 5/24/02 12:58 a.m.
                                                     Re: Jesus.Kellen Squire 5/24/02 8:24 a.m.
                 Re: Doomsayers vs MS Kool-AidMiguel Chavez 5/22/02 1:33 a.m.
                       Re: Doomsayers vs MS Kool-AidNarcogen 5/22/02 4:54 a.m.
     Re: Death of the Xbox?Cunbelin The Longwinded 5/23/02 5:40 a.m.



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