Microsoft seeks magic for the X-BOX – Macitynet.it
Microsoft is trying to find a way to limit the losses caused by the X-BOX and push the console sales and it seems to see the solution in the integration of the digital recorder functionality.
To support the thesis that the X-BOX could soon evolve into something more complex than a simple Red Herring video game apparatus. According to the online edition of the Microsoft magazine, in fact, it has been testing for some time a console equipped with Hard Disk and TV tuner thanks to which it would be possible to record TV programs and watch them on the TV. The X-BOX "on steroids", could be sold at higher prices than the current ones, allowing to reduce the real capital bleeding caused by the need to compete with fierce opponents.
According to some calculations made by Red Herring himself, Microsoft could lose from the sales below the cost of the X-BOX $ 750 million in 2002 which will become, one billion and one hundred million in the course of 2003 when new drops in the list are expected to arrive without Redmond having succeeded to decrease construction costs considerably.
At the moment each X-BOX costs Microsoft $ 325, but is sold to shopkeepers for $ 175 resulting in losses of $ 150 each machine sold. The living costs of the X-BOX could drop to $ 225 no earlier than five years according to some calculations, which would mean a very important balance sheet red for the window company. All this while the competitors, Sony and Nintendo, who also sell their machines below cost, will be able to file the losses on each console very quickly and to make profits thanks to the higher sales volume of the games.