View Full Version : $50 Xbox360 Wireless Controller costs $11 to make.
Admiral Ackbar
02-23-2006, 12:08 PM
http://www.eetimes.com/showArticle.jhtml?articleID=180201706&pgno=3
Their estimates don't include cost of production. But it wouldn't suprise me if it costs MS $20 total per $50 Wireless controller sold.
shipwreck
02-23-2006, 12:16 PM
Well, accessories are always a way that companies try to recoup selling the actual consoles at a loss. It's a good strategy... and a good controller.
LinkinPrime
02-23-2006, 12:26 PM
It's a good strategy... and a good controller.
I still have a habit of moving my legs to try to get around the cables and then I realize, its wireless. Its such an awesome controller and getting used to wireless is going to spoil me.
Javery
02-23-2006, 12:48 PM
I still have a habit of moving my legs to try to get around the cables and then I realize, its wireless. Its such an awesome controller and getting used to wireless is going to spoil me.
Haha - me too! I'm always flicking my wrists as if to get more slack in the cord but it's not there. My wife is always telling me I look like I'm having a mini-seizure or something every 30 seconds. I love the controller - it might be the best one I've ever used.
takingchase
02-23-2006, 12:58 PM
I still have a habit of moving my legs to try to get around the cables and then I realize, its wireless. Its such an awesome controller and getting used to wireless is going to spoil me.
agreed, I never really saw what the hype behind wireless controllers were but after getting my xbox 360 the controller cord on my ps2 started pissing me off so I went out and bought a logitech wireless controller for my ps2.
shipwreck
02-23-2006, 01:01 PM
... and a good controller.
And with those 4 little words, I've completely redirected the conversation of this thread. I should be a PR person for Microsoft or something. :lol:
Javery
02-23-2006, 01:03 PM
And with those 4 little words, I've completely redirected the conversation of this thread. I should be a PR person for Microsoft or something. :lol:
OK back on track - MS has to make up the money somewhere but if it really costs $11 to make I think a $30 retail price is more than fair. Extra controllers shouldn't cost $50. Remember the good old days of 2 controllers packed in with the system?
Transformah
02-23-2006, 01:06 PM
I'll agree, best controller I've ever used, except when I'm playing DOA4, when I go for the X button quickly, I hit start. Otherwise, very comfortable and easy to use.
shipwreck
02-23-2006, 01:10 PM
OK back on track - MS has to make up the money somewhere but if it really costs $11 to make I think a $30 retail price is more than fair. Extra controllers shouldn't cost $50. Remember the good old days of 2 controllers packed in with the system?
That was $11 for just the materials though. Paying machines to put these together has to add some cost and there is also packaging and shipping. (And holograms, I'd like to know if the cost of holograms is in that estimate.)
I'm guessing that retailers actually get a little better deal on accessories as well (otherwise they wouldn't be trying to push accesories with system bundles), so when you factor all of that (along with Paypal and eBay fees of course), Microsoft might not be making the $39 per controller that it initially appears.
Javery
02-23-2006, 01:14 PM
That was $11 for just the materials though. Paying machines to put these together has to add some cost and there is also packaging and shipping. (And holograms, I'd like to know if the cost of holograms is in that estimate.)
I'm guessing that retailers actually get a little better deal on accessories as well (otherwise they wouldn't be trying to push accesories with system bundles), so when you factor all of that (along with Paypal and eBay fees of course), Microsoft might not be making the $39 per controller that it initially appears.
Right. I'd bet that even with the costs to manufacture and cost to retail, etc. Microsoft would still make a nice profit if the price was set at $30 though. At least that's what I'd like to think while I'm shelling out $50 this weekend so I can play some 2 player DOA4 in my living room... :D
LinkinPrime
02-23-2006, 01:18 PM
Right. I'd bet that even with the costs to manufacture and cost to retail, etc. Microsoft would still make a nice profit if the price was set at $30 though. At least that's what I'd like to think while I'm shelling out $50 this weekend so I can play some 2 player DOA4 in my living room... :D
They lost a lot of moolah with the XBOX so I think that they have a high margin on accessories and other stuff to try to make up for last gen.
Zoglog
02-23-2006, 02:23 PM
the 360 controllers are worth it. Companies exist to make a profit. Some people get upset because of it which I think is retarded.
jkanownik
02-23-2006, 03:01 PM
Retail Price $ 49.99
Retailer Cost (35% margin) $ 32.49
M$ Price $ 32.49
Total Cost to Make $ 20.00
M$ Margin38%
Assuming the retailers are making a 35% margin on this thing, M$ is making just about the same margin at a $20 total cost. There are no shenanigans here.