X360 wireless controller=$11 cost

[superguy]

http://www.eetimes.com/showArticle.jhtml?articleID=180201706&pgno=1&www.dailytech.com


Interesting tidbit.

 

[DopeyFish]

Bill of Material != cost of product

 

[Joe DeFuria]

http://www.eetimes.com/showArticle.jhtml?articleID=180201706&pgno=1&www.dailytech.com


Interesting tidbit.

Why?

 

[Guden Oden]

Why not?

 

[London Geezer]

'cause!

 

[rumaki]

$11

+ Packaging

+ Shipping

+ Marketing

 

[mckmas8808]

So how much do they cost in stores?

 

[pc999]

Still I dont expect it to cost even only 20$, the Packaging for this is really little, the Marketing do you really need this for a MS controller at the maximum it is a webpage, only the shiping will be "costly" so they sell at ~50$ they should have a 250% proffit per controller.

 

[see colon]

Still I dont expect it to cost even only 20$, the Packaging for this is really little, the Marketing do you really need this for a MS controller at the maximum it is a webpage, only the shiping will be "costly" so they sell at ~50$ they should have a 250% proffit per controller.

minus testing, support, design, and market research costs. support is a big part of it, too. you have to pay the guys (and gals) who answer the phones when people have questions, pay the techs to build the knowlage base and infrastructure for the support, pay people to train the support personal, pay for shipping RMA'd units (at least one way), and pay the people to work on the RMA'd units.

 

[pc999]

They only test a small % of controlers and probably that make them more profitable anyway.

The design is also based on the XB so a lot of cost are probably offload to it.

The same with market research.

The same with suport (althought taday I am a bit optimist and I think there arent so much people with doubts about a controller and people can figure by them selfs how it works, even if they need the manual).


" pay for shipping RMA'd units (at least one way), and pay the people to work on the RMA'd units" I dont know what is this but it seems that goes under the shiping price.

But anyway it is not the case that MS controllers are the only clients they need to pay all by them selfs using only woth the controler.

 

[superguy]

I only posted this as a concrete example of BOM on peripherals.

And frankly, I'm sure materials cost on this is far above the other peripherals.

It just sorta confirms what we all knew that peripherals are a big profit source.

 

[Joe DeFuria]

It just sorta confirms what we all knew that peripherals are a big profit source.

Actually, it doesn't.

The BOM ( as others have stated) is not the only, and in fact not likely to be the highest, "cost" for getting a product all the way from creation to in the hands of the consumer. It's but one cost of many.

 

[superguy]

Still I dont expect it to cost even only 20$, the Packaging for this is really little, the Marketing do you really need this for a MS controller at the maximum it is a webpage, only the shiping will be "costly" so they sell at ~50$ they should have a 250% proffit per controller.

yes

 

[DuckThor Evil]

I don't see any news here, offcourse they are making profit with the controller, hd etc... 2-3x is normal in my opinion.

 

[jpr27]

This gen MS own rights (royalty? patent?) on all 3rd party accessories as well correct? i.e. they will make a larger % from any 3rd party accessories then last generation? You can tell MS learned (and adjusted) quick to pull in every extra $$ where they could.

 

[Powderkeg]

This gen MS own rights (royalty? patent?) on all 3rd party accessories as well correct? i.e. they will make a larger % from any 3rd party accessories then last generation? You can tell MS learned (and adjusted) quick to pull in every extra $$ where they could.

3rd party accessories have to be approved and the manufacturer does have to pay royalties to MS.

MS is going to make a profit off the 360 in a very short time. When a person buys a core system, hard drive, and a single wireless controller, MS basically breaks even. Anything beyond that is profit. Premium owners are the only ones costing MS significant money on hardware at this point.