Xbox marketing strategy

Xbox 36o which is recently launched in US actually cost more than its sells for. Apparently the parts alone exceed the retail value for it. Imagine if you include the other cost like assembly, packaging, R&D and so on, MS is making a lost just by selling this machines.

However, this clever trick of theirs by selling the hardware cheap and making a gain from the sales of games might just work. Whats use of a box if it does not play any games. Eventually, this might crush Sony and Nintendo if they do not have the financial capacity MS have.

If you realise, this is not the first time MS pull such a stunt. Remember IE? Its free too? Remember Netscape? Dont think anyone remembers them now.

Read on