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  Is Microsoft losing money on Xbox 360?
Time: 09:57 EST/14:57 GMT | News Source: Macworld | Posted By: Andre Da Costa

Despite promises from Microsoft Corp. executives that the retail price of the new Xbox 360 game console would cover production costs, product tear downs by two different market researchers suggest that the company is losing money on the machines. On Thursday, researcher Portelligent Inc. conducted a tear down analysis of the standard Xbox 360, which retails for US$299.99, and estimated its actual material costs at around $310, suggesting a slight loss on every machine sold.

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