If you landed a Premium Xbox 360, you just cost Microsoft $126. That's the number that Business Week is giving regarding how much Microsoft is losing on each Xbox 360 being sold. Losing money on console releases is nothing new. Sony did and will again, it's part of the game, lose money on the hardware, make it back in software. Similarly, the report says that the original Xbox contained $323 worth of parts and retailed for $299. So the hit to Microsoft is a little bigger. Unless you landed a Core pack. In which case, we owe you a hug.

Microsoft's Red Ink Game [Business Week]

Contact information for this author is not available.