The folks over at Gamershell.com are reporting that it actually costs Microsoft $715 dollars to manufacture a single Xbox 360 console. This information came from a supposed informant over at IBM who worked on the 360 chip design. Whatever the cost might be, it’s clear that Microsoft is losing money on every console. Should we pity them? NO WAY. The dollars lost will be made up in game sales and licenses. A small price to pay to try and gain market share in the game console business.

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