XBox Economics. An insightful analysis of the economics of the XBox
The economics of the XBox don’t add up now, and they get worse with time. Sony and Nintendo can kill the XBox on cost alone. The “software subsidies” that Microsoft expected are a myth. Game console prices will continue to drop, from $199 to $149, then on down to $99. Will Microsoft ever make it to the $99 level of this game? We’ll see. According to XBox economics, it all depends on how much money they are willing to lose.