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Blaze Lord
22/Feb/06, 01:53 AM
http://www.eetimes.com/showArticle.jhtml?articleID=180201706

Apparently the controller, before shipping and packaging and so forth, is costing Microsoft $11 to make. Wal-Mart (http://www.walmart.com/catalog/product.do?product_id=4196266) (yes, yes, evil company, but decent barometer of conservative retail prices) is $50. 11/50=.22. So 22% of retail.

Killer 57
22/Feb/06, 02:03 AM
so are we getting ripped pf here or what?

sharplayer
22/Feb/06, 02:10 AM
I dont get it. Who makes more profit?

Blaze Lord
22/Feb/06, 02:18 AM
The general idea is that this is pretty expensive. I don't think so, though, because usual retail mark-up is 50%. So add in packaging and shipping, and Microsoft's not really gouging. They just definitely aren't taking the hit that they do with the console.

Steve
22/Feb/06, 04:54 AM
It does not cost 11 dollars to make a controller like that which is programmed with the lights to moved on cetain ques and such. I beleive that is wrong, 11 dollars is not the price for the wireless controller. I can guess 30-50 at the least, but that is just way to much of a profits space for the big MS. It is almost freaky to imagine they would rip us off in such a high percentage like that, but than again it is Microsoft. :unsure:

Blaze Lord
22/Feb/06, 05:14 AM
...I don't think having moving LEDs would really cost that much money, Steve.

And, once again, I'm pretty sure that average retail markup is 50% of retail price. That means Wal-Mart is buying them at around $25. Which means before shipping and packaging, Microsoft is making $14. Not that much, considering the hosing they took when I bought the console. Essentially, they paid me to keep a 360 in my house.

mjmaskrey
22/Feb/06, 06:30 AM
I'm not too bothered who is making profit as I think the controller is a decent price and in line with other 1st party console controllers.

At the end of the if no-one was making money off them no-one would want to stock them.

:)

Blaze Lord
22/Feb/06, 07:52 AM
Oh, plus.

My wireless Xbox controller is the best controller for a console I've ever had.

Mez
22/Feb/06, 01:30 PM
It does not cost 11 dollars to make a controller like that which is programmed with the lights to moved on cetain ques and such. I beleive that is wrong, 11 dollars is not the price for the wireless controller. I can guess 30-50 at the least, but that is just way to much of a profits space for the big MS. It is almost freaky to imagine they would rip us off in such a high percentage like that, but than again it is Microsoft. :unsure:

11 dollars for the controller is quite believable, when you're maybe talking a couple of bucks on the LED's, 3 bucks on cheap ass labour, 5 bucks on the bluetooth and a buck on moulding the plastic for the controller in mass.

WACCOE
22/Feb/06, 06:25 PM
Surely the controller would have cost about $3 dollars at most to make! :brow