Monday, July 9, 2007

Would Microsoft pay me to take their console?

No, not really free Wiis, but check this: by some estimates, Microsoft loses $125 each time it sells a 360. Microsoft is also taking a nearly $100 charge per 360 sold so far for warranty costs.

Estimates for the Wii suggest that Nintendo makes $90 each time it sells a Wii for $250.

If the Wii costs about $160 to make and Microsoft is willing to lose $225 per console, would Microsoft be willing to pay me $65 to take a Wii-like console? Microsoft would be doing better business by giving Wiis away than selling 360s.