Anti-competitive biz practice?

Lyndon Tiu ltiu at alumni.sfu.ca
Wed Nov 23 15:30:27 MST 2005


I remember reading somewhere you are not allowed to sell something below cost or you can be sued bu gov't

>From Slashdot.

Games: Microsoft Loses $126 Per Unit on XBox 360
Posted by CmdrTaco on Wednesday November 23, @12:18PM
from the so-we-should-buy-more-right dept.
XBox (Games)
ahess247 writes "BusinessWeek has taken a look at the insides of the XBox 360 and with the a little help from market researcher iSuppli determined that Microsoft is continuing its tradition to taking a big loss on the console in hopes of making a profit on games. From the article: "An up-close look at the components and other materials used in the high-end version of the Xbox 360, which contains a hard drive, found that the materials inside the unit cost Microsoft $470 before assembly. The console sells at retail for $399, meaning a loss of $71 per unit -- and that is just the start. Other items packaged with the console -- including the power supply, cables, and controllers -- add another $55 to Microsoft's cost, pushing the loss per unit to $126." 

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Lyndon Tiu


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