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Microsoft loses money on each Xbox

Time: 11:53 EST/16:53 GMT | News Source: News.com | Posted By: Andre Da Costa

The cost of building a Microsoft Xbox 360 video game console is nearly 40 percent higher than the retail price, technology and microchip research company iSuppli said on Wednesday. The firm estimated the total cost to manufacture and test a premium Xbox 360, the software giant's sleek and powerful new gaming machine, which debuted on Tuesday, was $552.27, compared with its retail price of $399. Microsoft aims to sell about 5.5 million premium and lower-priced basic Xbox 360 units by the end of June. The machine will compete with the PlayStation 3 from Sony and Nintendo's Revolution, each due out in 2006.

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