The Xbox 360 ("three-sixty"), known during development as the Xenon, Xbox 2, Xbox Next or Nextbox, is the successor to Microsoft's Xbox video game console. Microsoft officially unveiled it on MTV on May 12, 2005, with detailed launch and game information divulged later that month at the prominent Electronic Entertainment Expo. Upon its release on November 22, 2005 in North America, December 2 in Europe, and December 10 in Japan and Mexico, the Xbox 360 became the first console to have a simultaneous launch across the three major regions. It also serves as the first entrant in a new generation of game consoles and will compete against Sony's PlayStation 3 and Nintendo's Wii.
BusinessWeek magazine compiled a report that estimates the total cost of components in the "premium" bundle at $525 USD, sans manufacturing costs, meaning that Microsoft is losing money on every Xbox 360 system sold (in the United States, at least). It should be noted that the strategy of selling a console at a loss or near-loss is common in the console games industry, as console makers can usually expect to make up the loss through game licensing. Furthermore, since Microsoft owns the intellectual property rights to the hardware used in the Xbox 360, they can easily switch to new fabrication processes or change suppliers in the future in order to reduce manufacturing costs. This flexibility stands in contrast to the situation faced with the original Xbox, which contained a processor from Intel (a slightly modified Pentium III) and a GPU from NVidia (a modified GeForce 3). Because of the added expense of these chips and the inclusion of a hard drive component, Microsoft was never able to reduce Xbox manufacturing costs below the break-even point. As a result Microsoft's home entertainment division posted a loss through nearly every quarter of the console's lifecycle, including a loss of US$ 38 million during Microsoft's 2005 Q3, at the Xbox 360 launching. Microsoft is predicting that with the Xbox 360, a greater market share and falling hardware costs will eventually make system sales profitable.
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Ars Technica - First in a series of articles exploring the hardware platform.
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IGN Xbox 360 - News, previews, trailers, screenshots, and message boards.
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Xbox 360 - The Official Xbox 360 site
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Meta Description: [ Xbox Circle, the premiere site for Xbox 360 News, Previews, And Reviews. Get the latest news on hit titles like Perfect Dark Zero, Project Gotham Racing 3, and Ghost Recon Advanced Warrior. ]
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