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Gross vs. Profit
Posted By: Narcogen <narcogen@rampancy.net>	Date: 5/21/02 10:39 p.m.
In Response To: Re: Death of the Xbox? (ferrex) : 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. Which would make the loss per console almost the same as the price of the console. : 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. Might even compel them to drop the HD unless there's a reason not to. Halo might use it, but it doesn't seem as if some of my other games do. I never hear it spin up while playing NHL Hitz or DOA3 or PGR. : 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. Congrats, rex, you've just radically redefined the term "profit". :) The profit on a title like Halo is the amount left over not just after the manufacturing and shipping costs. But also all the salaries of everyone at Bungie Studios, divided by a coefficient describing how much of their time was allocated to Halo. Also a percentage of the marketing and advertising budget-- 100% of all advertising and promotion dedicated to Halo alone, plus an equal share of all general Xbox-related marketing and promotion which Halo benefits from... etc etc. : 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. : 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

rampancy

Message Index

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. Profit	Narcogen	5/21/02 10:39 p.m.
Re: Hard Drive	NthDegree256	5/21/02 11:12 p.m.
Re: Hard Drive	NthDegree256	5/21/02 11:13 p.m.
hard drive vs. memory card	Narcogen	5/22/02 1:38 a.m.
Re: hard drive vs. memory card	Mark Levin	5/22/02 1:46 a.m.
nice feature, just not essential	Narcogen	5/22/02 4:39 a.m.
Re: hard drive vs. memory card	Miguel Chavez	5/22/02 1:51 a.m.
Re: hard drive vs. memory card	poena.dare #CP#	5/22/02 2:23 a.m.
Re: hard drive vs. memory card	Mark Levin	5/22/02 3:21 a.m.
DVD Consortium Charges	Narcogen	5/22/02 4:48 a.m.
Re: DVD Consortium Charges	Louis Wu	5/22/02 8:30 a.m.
Re: DVD Consortium Charges	Narcogen	5/23/02 1:33 a.m.
Re: DVD Consortium Charges	Mark Levin	5/23/02 2:15 a.m.
Re: DVD Consortium Charges	Narcogen	5/23/02 3:05 a.m.
Re: DVD Consortium Charges	Mark Levin	5/23/02 3:09 a.m.
Re: DVD Consortium Charges	Narcogen	5/24/02 4:14 a.m.
xbox as music player	Narcogen	5/22/02 4:45 a.m.
The Console Cave	Narcogen	5/22/02 4:42 a.m.
Re: hard drive vs. memory card	SpudBoy	5/22/02 1:52 a.m.
PGR ghosts and Myth Filmz	Narcogen	5/22/02 5:04 a.m.
Re: Gross vs. Profit	vector40	5/21/02 11:28 p.m.
Grosse Profit Pointe	Narcogen	5/22/02 1:44 a.m.
Re: Gross vs. Profit	Miguel Chavez	5/22/02 1:22 a.m.
Profit vs. Revenue	Narcogen	5/22/02 1:52 a.m.
Doomsayers vs MS Kool-Aid	Narcogen	5/21/02 9:38 p.m.
Re: Doomsayers vs MS Kool-Aid	Kellen Squire	5/21/02 10:57 p.m.
Kool Aid vs FUD	Narcogen	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 TO	Kellen 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-Aid	Miguel Chavez	5/22/02 1:33 a.m.
Re: Doomsayers vs MS Kool-Aid	Narcogen	5/22/02 4:54 a.m.
Re: Death of the Xbox?	Cunbelin The Longwinded	5/23/02 5:40 a.m.