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$125 Loss on Xbox 360’s

Researchers at iSuppli released a report that contends Microsoft may be losing as much as $125 per device based on the cost of components the analysts found when they took apart a new Xbox 360. The Xbox 360 consoles retail for a $299 core system ($399 for the extras including a hard drive), but iSuppli, El Segundo, Calif., discovered internals that may have pushed the cost of assembling the devices far beyond that price tag.

According to iSuppli, the IBM chip and other integrated circuits in the Xbox 360 total an estimated $340 per console alone, with the PowerPC 3.2GHz processor running an estimated $106. It has been widely reported for years now that Microsoft has incurred large losses on the original Xbox, an estimated $4 billion over the life of the system, according to IGN.

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