Microsoft's XBox a Loss Leader?

Posters Name: Kagato
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Subject: Microsoft's XBox a Loss Leader?

Many people have been wondering how Microsoft can be making money off the XBox being that you're getting a 733Mhz PC with a GeForce3 comparible graphics chipset at the helm. Well, according to this little article over at Forbes, they aren't making money, quite the opposite. Microsoft is actually loosing $100 per XBox unit they sell. Well, that explains their whole "bundling" marketing ploy ($1000 bundled packages) being that the money is in the software/games.

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