The Price of a Controller

[Weapon 117]

EETimes have broken down the components contained in a wireless Xbox 360 controller and come up with a materials cost price of around 22 percent of the retail price.

EETimes carried out a "bill-of-material" estimate of the wireless controller at around $11, which is roughly 11% of the reail price. It should also be noted that this price doesn't include labor (if any) and also logistics costs. Still gives you an idea of where Microsoft can recoup some of the loss they make on each of the actual consoles they sell.

[KMB 316]

i do not blame MS since they lose money on their console, but in a year i think everything will decrease except console prolly

[DarkLif3]

It's usually always like this. Even with retail stores such as Best Buy. For example, a TV cable can cost $29.99 but an employee will only pay $2.99 with the discount. But a game on the other hand can be $49.99 and an employee would pay $48.89. Best Buy doesn't make a lot of money on video game sells. That's how many companies make their money is from the sell of accerssories.

[k_dog]

This hold's true in just about every industry.

Take the Wireless World for example:
More Specificly the v3 RAZR.

I costs our company $340 USD to have this phone. We sell it for $99.99 USD with a Two-Year agreement. Which means we losed roughly $240.00 USD per new activation/upgrade.

On the Contrary:
Our Accessories cost the company, on average, $3.00 to have in stock. They sell from anywhere $19.99-$99.99.

Profit Margin is MUCH greater.
This also does not include the Add On Features such as Text Messaging or Wireless Internet that our Company profits from.

We may lose on the Initial equipment but In turn, make it back with our other accessiories and Features as well.

-Brian

[KMB 316]

speakers have the biggest mark up of all. a 12 inch rockford subwoofer retail like 190 an employee can get it for like 76

[k_dog]

speakers have the biggest mark up of all. a 12 inch rockford subwoofer retail like 190 an employee can get it for like 76


I heard something about how shoes average from 10-20$ a pair and sell for $100+

[KMB 316]

bigget money maker for MS is ahrdrive, hardrive probally cost no more than 15 to make, it sells MSRP 100 lol.

[nestler16]

It's usually always like this. Even with retail stores such as Best Buy. For example, a TV cable can cost $29.99 but an employee will only pay $2.99 with the discount. But a game on the other hand can be $49.99 and an employee would pay $48.89. Best Buy doesn't make a lot of money on video game sells. That's how many companies make their money is from the sell of accerssories.


i work at best buy and on all the consoles but the 360 we got about 5 bucks off but with the 360 its closer to 10

[k_dog]

Yeah, but what of OTHER merchandise in the store? A friend of mine has worked there for 2 years and his discound is RETARDED when it comes to some of the stuff he buys.

-Brian

[DarkLif3]

Yep you wont get much money off of games, movies and consoles. :-\

[graf1k]

That's a pretty big mark up even when you factor in manufacturing and marketing costs. BTW, the wireless 360 controller can be had for less if you look around. Computer4Sure has it for $38 and free shipping on orders over $50. I've used them for an extra wireless controller, the wireless adapter, play & charge kit, 12 month XBL package and the logitech harmony remote for 360. I think I saved about $70 all totalled.

[nestler16]

we get good discounts on tvs and car stereo shit other then that the discount is pretty bad

[scoobydiesel]

yeah i think MS is making most there money off core systems with people buying harddrives witch is only 20 gigs and 20gigers are so so cheap now adays

[CrakkedOut56]

this price doesn't include labor (if any)

lol.....ofcourse theres labor...someone has to program the SMT machine to pick and place the parts onto the board - resistors, diodes, caps etc. etc....if they have a machine that picks and places the thumbsticks etc. id be impressed

[Predator360]

The controlers cost 30 pound in the U.K. Whitch probally works out the same price.

[Substance 360]

The controlers cost 30 pound in the U.K. Whitch probally works out the same price.


Controllers are pretty dear, but its not something you buy everymonth is it ?

[k_dog]

yeah i think MS is making most there money off core systems with people buying harddrives witch is only 20 gigs and 20gigers are so so cheap now adays


Correction, they are 13 gig after the Memory the System decides it suposed to use and the content that comes pre loaded onto it.

This holds true with the memory units. They SAY 64mb but are really 51mb

-Brian

[ianc125]

thats what i ahte about the packaging you never know how much your really going to get

[k_dog]

thats what i ahte about the packaging you never know how much your really going to get


Now, don't confuse that with false advertisment because they are, by all means, 20 gig and 64 mb respectivly. The 360's Manual Explains that the system has to use some memory to work properly. This was pointed out to me by our Microsoft Rep.

-Brian

[ianc125]

i know thats what i was thinking i hate how they bend the rules
most people would assume its false advertising though

[JunK!e]

EETimes have broken down the components contained in a wireless Xbox 360 controller and come up with a materials cost price of around 22 percent of the retail price.

EETimes carried out a "bill-of-material" estimate of the wireless controller at around $11, which is roughly 11% of the reail price. It should also be noted that this price doesn't include labor (if any) and also logistics costs. Still gives you an idea of where Microsoft can recoup some of the loss they make on each of the actual consoles they sell.




Lets do this math again... 11 dollars out of 50 is 22 percent of the retail price... just getting that straight. Unless the wireless controllers cost 99 bucks.

[Minty]

yeah, hes right. i was justaboutto post the same thing lol

[JunK!e]

Im glad Im not the only one minty ;D