according to Tomshardware, though microsoft still believes it on track to reach 10 million xbox360s sold by years end the cost of manufacturing the console apparently has INCREASED!!! link

http://www.tgdaily.com/2006/11/07/xbox360_production/

its not doom and gloom i' m reporting, but its quite interesting that 1 year in and production costs for 360 have not come down, but instead increased.

According to the company, the Xbox 360 is more expensive to manufacture than one year ago. And considering the fact that Microsoft was estimated to pay $550 to get one Xbox 360 out the door in November of last year, the company could see increasing pressure and have little room to fend off the PS3 and Wii through more aggressive pricing.

so an aggressive price drop (for 360) out of the question for the forseeable future,
or are microsoft just leading us on?
Also if microsoft is finding it difficult to cut manufacturing costs how will sony fair with its technology crammed ps3?

Why would they need a price cut? Yeah, it' d be nice, but it' s not like it' s ridiculously expensive is it?

Increasing costs for a console a year after launch is retarded! Well, I guess that would explain the fact that less people are complaining about D.O.A. units.

I think the 360' s pricing puts them in a really good position this christmas.

Wii = $249
360 = $299
PS3= $499

It' ll be interesting to see how the 360' s larger game library plays into sales this Christmas. I wonder if they' ll bundle a game or two?

Well at the moment microsoft won' t need to cut the price since they still have a more affordable HD console compared to the ps3, but if production costs (are reportedly) are rising when can we expect a drop in the console price, after all to reach the mainstream you need to reduce the price (considerably - US$200 or less).

Are we in 2 years time still going to be paying the same price for a 360? microsoft can' t continue to absorb losses like this indefinately, they are going to want to see some return on there investment.

anyway this also bodes ominiously for ps3, with microsofts problems in curbing production costs i don' t see ps3 price come down for an even longer time, considering high intial cost to sony, plus more packed in technology plus its late arrival in the scene.

everyone believes that within 2 years most consoles will see a price drop but if these reports are true then this may no longer be the case.

On the other hand Nintendos Wii will definately see a price drop within the forseeable future - improving its mass market penetration.

They should bundle the 360 with COD2 or Dead Rising, that' d be sick

Microsoft can and will absorb losses as long as need be! Hell they could throw it to us for free to laughs. well maybe not but its close!

Wii = $249
360 = $299
PS3= $499

many people don' t see it this way, the 20Gb ps3 model should be compared to the premium pack and not the core. may be you' re saying this as it' s the choice on he market, but i don' t think the core is a choice, at least you should buy a memory card and the total cost is around 325$.

i could say the same thing for the wii, you should add an extra sd card or whatever to save your games, but in this case , the diffrence is still huge between the wii and ps3.

ORIGINAL: Abasoufiane

Wii = $249
360 = $299
PS3= $499

many people don' t see it this way, the 20Gb ps3 model should be compared to the premium pack and not the core. may be you' re saying this as it' s the choice on he market, but i don' t think the core is a choice, at least you should buy a memory card and the total cost is around 325$.

i could say the same thing for the wii, you should add an extra sd card or whatever to save your games, but in this case , the diffrence is still huge between the wii and ps3.

I' m looking at this from the cheapest price point, as most parents and non-gamers do if they intend to buy a system. When a mother goes into Best Buy this Christmas she' s gonna be cheap (as all parents tend to be with something they don' t understand). Gamers, such as ourselves, of course see the value of the PS3, and the premium 360, but for someone who' s not very well versed in the video game world, it' s another story. Of course parents know, nowadays, there' s gonna be accessories and games to buy once they get the system, but that bottom line price for the console is the most important thing, in their eyes.