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Weapon 117
02-22-2006, 11:40 PM
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
02-22-2006, 11:42 PM
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
02-22-2006, 11:45 PM
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
02-22-2006, 11:51 PM
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
02-23-2006, 12:06 AM
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
02-23-2006, 12:07 AM
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
02-23-2006, 12:10 AM
bigget money maker for MS is ahrdrive, hardrive probally cost no more than 15 to make, it sells MSRP 100 lol.

nestler16
02-23-2006, 12:23 AM
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
02-23-2006, 12:31 AM
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
02-23-2006, 12:35 AM
Yep you wont get much money off of games, movies and consoles. :-\

graf1k
02-23-2006, 12:38 AM
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
02-23-2006, 04:50 AM
we get good discounts on tvs and car stereo shit other then that the discount is pretty bad

scoobydiesel
02-23-2006, 08:03 AM
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
02-23-2006, 02:59 PM
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
02-24-2006, 02:41 PM
The controlers cost 30 pound in the U.K. Whitch probally works out the same price.

Substance 360
02-24-2006, 02:51 PM
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
02-26-2006, 12:47 AM
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
02-26-2006, 12:50 AM
thats what i ahte about the packaging you never know how much your really going to get

k_dog
02-26-2006, 12:56 AM
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
02-26-2006, 03:33 AM
i know thats what i was thinking i hate how they bend the rules
most people would assume its false advertising though

JunK!e
02-26-2006, 06:11 AM
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
02-26-2006, 09:34 AM
yeah, hes right. i was justaboutto post the same thing lol

JunK!e
02-26-2006, 02:55 PM
Im glad Im not the only one minty ;D

Dav13s
09-29-2011, 07:39 AM
Welcome to business everybody. This happens in almost every industry. A main product will sell for a loss, while accessories sell for greatly inflated prices to make up for the loss. Supermarkets do it on a grand scale to get people through the door. They have a product on offer selling at a loss, put it at the back of the shop so you have to walk past everything to get to the product, more than likely picking up other things on the way, thus negating the loss made by the supermarket on the product on offer. If the price of a new controller bothers you so much, buy 2nd hand off ebay or something. Or buy a wired one, since they're cheaper in the first place.

KNUCKS x360a
09-29-2011, 08:23 AM
ouch my wallet hurts

Welcome to business everybody. This happens in almost every industry. A main product will sell for a loss, while accessories sell for greatly inflated prices to make up for the loss. Supermarkets do it on a grand scale to get people through the door. They have a product on offer selling at a loss, put it at the back of the shop so you have to walk past everything to get to the product, more than likely picking up other things on the way, thus negating the loss made by the supermarket on the product on offer. If the price of a new controller bothers you so much, buy 2nd hand off ebay or something. Or buy a wired one, since they're cheaper in the first place.

Wow. You guys just necro'd a **5 year old** thread! :woop:

How does that even happen?!...:p

Dav13s
09-29-2011, 08:49 AM
Wow. You guys just necro'd a **5 year old** thread! :woop:

How does that even happen?!...:p

So we did (well, I didn't technically). Meh, I feel slightly embarrassed :( lol

Skilled
09-29-2011, 09:15 AM
Wow, 5 years old. Didn't even notice O.o

KNUCKS x360a
09-29-2011, 09:16 AM
So we did (well, I didn't technically). Meh, I feel slightly embarrassed :( lol

:p Don't worry man, it was just good for a chuckle!

I can understand how you (as second poster) would reply, but the 1st guy?! lol

Ah well, its nothing to me anyway! (I'm sure someone will be along to lock it soon)

Burnout x360a
09-29-2011, 09:16 AM
Ah, another day another thread revival.

Dav13s
09-29-2011, 09:52 AM
:p Don't worry man, it was just good for a chuckle!

I can understand how you (as second poster) would reply, but the 1st guy?! lol

Ah well, its nothing to me anyway! (I'm sure someone will be along to lock it soon)

Bloody n00bs :p

Repo
09-29-2011, 11:03 AM
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

A retarded discount? So if he uses his card then he has to pay $60 for a $50 item? :p



(Yes, I do know it's an old thead! :) )


The black wireless controller can frequently be found for under 18 now; it was 16 at Zavvi yesterday!

Blink
09-29-2011, 01:17 PM
Good luck buying all these $11 parts and assembling them into a controller. You're paying for the intellectual property of the circuit inside the controller, as well as the brand name.

Terriah
09-29-2011, 05:21 PM
Yesterday you could buy a black/white wireless controller off Zavvi for 16.07.
Thought it was a pretty good deal. Isn't often you get such a reduction on hardware or accessories though.