Microsoft losing $126 on every sold Xbox 360?

According to Business Week calculations, Microsoft could be losing up to $126 per Xbox 360 unit sold, considering component discounts. An up-close look found that the system selling for $399 was valued at $525 before assembly, including accessories. No word on how much the core system is valued at.

Granted, that’s a small price to pay for the intended high market share, but you gotta believe the software giant doesn’t want another $4 billion in losses this go around.