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XBox Economics

Time: 14:51 EST/19:51 GMT | News Source: E-Mail | Posted By: Byron Hinson

Look at the price of Microsoft's XBox and you'll probably chant the magical phrase: "give away the razors and sell the hell out of blades!" We all want to believe that the Microsoft XBox, Sony Playstation 2, and Nintendo GameCube are $1,000 machines practically given away for $199. We are told that the hardware companies lose money on the hardware sales and make up the difference in software sales. In reality, Microsoft is the only one that has bought in to this "lose money on the hardware" idea.

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