speakin' of the xbox. .

[actualfact]

i heard ms loses ~$100 on each one sold.  any truth to this?

[Ralisten]

As far as I know, that's true. All the console companies - Nintendo, Sega, Sony, and now Microsoft - all lose money on their systems. They make up for that in licensing deals through companies and gaming software. Last I heard the PSOne lost ~$50 a console, PS2 ~$75, N64 ~50

[Flank]

I'm not sure if this is true, but I heard that it is projected loss, not actual loss. They can make a profit of $100.00 and claim that they are losing $100.00 because they could be selling it at a higher price. I have a friend in the video game business who tells me that Sony makes $5.00 profit on each Playstation 2 they sell.