9072 Free XBox360's..

Discussion in 'Gaming' started by Sean*O, May 27, 2005.

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  1. Sean*O

    Sean*O Second Unit

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    I guess MS business model is literally to give them away to get them in homes:

    http://www.xbox.com/en-US/news/2005/...60Giveaway.htm


    Holy Moly! That is a lot of free systems (9072 of them.) Assuming that X360s retail at, or cost Microsoft ~$250 to produce, that is over $2.2 Million out the door right there.
     
  2. Jay Mitchosky

    Jay Mitchosky Producer

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    I wonder what their timeline is for return on investment?
     
  3. ChrisMatson

    ChrisMatson Cinematographer

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    Well, the Xbox has never been profitable for Microsoft.
    I'm sure they have smart marketing people that figure this is a continuation of their "viral" marketing.
     
  4. Tim Markley

    Tim Markley Screenwriter

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    Why not? Supposedly the consoles are sold at a loss anyway. How much do you think it costs Microsoft for a commercial spot? $2.2M is nothing and it's great advertising.
     
  5. Sean*O

    Sean*O Second Unit

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    Well, my only point being that it is an interesting advertising campaign.

    I'm sure Microsoft also got Mountain Dew/Pepsi to share in the costs, since the contest will require people to buy & consume a lot of the Pepsi brand.

    2.2 million would actually get them a fair amount of TV time if they shopped it right. I am sure that as the date draws near you will see a lot of TV ads playing up this promotion, so you have to figure in those costs on top of the giveaway.

    It's going to be a big campaign.
     

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