Methinks the math is flawed

Matthew Hoy
By Matthew Hoy on June 6, 2005

Various Web sites are claiming that the new Xbox 360 will cost $375 to manufacture and will sell for $299. The news sites then turn this into a $76 loss per console to Microsoft -- not unusual, because the money is made on the video games.

But I'm thinking the loss is going to be more than that -- are retailers going to stock the new console and not make a dime off it? Do retailers typically sell a new game system at cost?

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