Microsoft Cuts Xbox 360 costs by 40%

[Zeus]

According to a research firm, Microsoft has managed to cut down the manufacturing costs of the Xbox 360 by as much as 40%. This could result in them actually making some form of profit directly on the hardware.


According to iSuppli’s most recent analysis, the premium version of the Xbox 360 game machine equipped with hard disk drive has a manufacturing and materials total of $323.30, based on an updated estimate using costs in the fourth quarter of 2006. This total is $75.70 less than the $399 suggested retail price of the Xbox 360. Even though it is obvious that Microsoft still has to subtract freight, toll, retail partner’s profit and other possible charges, it is highly likely that Microsoft has either managed to reduce its loss to minimal, or is making a tiny profit selling the $399 flavour of the Xbox 360.


News Source: <A href="http://www.xbitlabs.com/news/multimedia/display/20061120132150.html" target="_blank">Xbitlabs.com</a>

[RMF]

This is more analyst bullshit. Wheres the proof of this? Anyway, it'll yhappen eventually but I doubt that they're making a profit yet. Also, the title of the thread/article is misleading. It should be Microsoft Cuts Xbox 360 production costs by 40%. You make it sound like they are cutting the retail price in half almost.

[pCeSlAyEr]

I understood the title perfectly fine...:confused:

awesome... so a price drop might come sooner then expected..

[iratasan]

I understood the title perfectly fine...:confused:

awesome... so a price drop might come sooner then expected..

from a strategical point it would be wise to do so, but i am not expecting them to do it. remeber how long it took them to finally drop the price of the xbox 1?

[daps83777]

This is more analyst bullshit. Wheres the proof of this? Anyway, it'll yhappen eventually but I doubt that they're making a profit yet. Also, the title of the thread/article is misleading. It should be Microsoft Cuts Xbox 360 production costs by 40%. You make it sound like they are cutting the retail price in half almost.

well for one from what i understand they are going to switch to 65nm processes on at least the cpu if not also the gpu if they can, which solves the heating issues and also means that it is cheaper to manufacture the chips. technology does get cheaper, and after a year with prices of there hardware going down, as well as changing to the smaller 65nm technology it is highly likely that they have been able to cut the price of manufacturing by 40%

[Scorpion3]

I understood the title perfectly fine...:confused:

awesome... so a price drop might come sooner then expected..

Same here. O_o Maybe he doesn't understand the differences between costs and prices. lol

from a strategical point it would be wise to do so, but i am not expecting them to do it. remeber how long it took them to finally drop the price of the xbox 1?

I know what you mean, remember when the Genesis actually costed less the some of the games that came out for it? Or even when the PSone was 50 bucks while the games were 20-30. New technology rules and all, but when 5 and 6 years later and neither the PS2 or the Xbox has made another price cut...it's sad.

[gonepostl]

I understood the title perfectly fine...:confused:

awesome... so a price drop might come sooner then expected..

Extremely doubtfull.:mad:

[Trashcat]

Extremely doubtfull.:mad:
I would not say so, price drop is very likely when ps3 becomes widely available, if Ms can boost the sales by dropping price they will probably do it especially if they can keep the console price efficient, no win, no loss, but potentially better sales.

[Havok154]

I would not say so, price drop is very likely when ps3 becomes widely available, if Ms can boost the sales by dropping price they will probably do it especially if they can keep the console price efficient, no win, no loss, but potentially better sales.

I'd agree. The only reason they were so hesitant with the old Xbox is because they're still losing money on it's sales.

[weetz]

I might wait until the xbox 360 has the 65nm CPU (1Q 2007 I think) because some of my friends who have just gotten their 360's say theirs get very hot and I would like to have cooler 360 than them :cool: .

[iratasan]

I'd agree. The only reason they were so hesitant with the old Xbox is because they're still losing money on it's sales.

so it was a wise move to let the xbox 1 simply die, stop manufacturing it, leave that market to the ps2 and concentrate on their new console? that sure did not piss anybody off. :D