RUMOUR: Microsoft planning a $100 Xbox 360 price drop?

[tomato]

http://www.gamespot.com/news/show_blog_entry.php?topic_id=24840831&sid=6154688

"Taiwanese tech site Digitimes.com is reporting that Microsoft may cut the price of the Xbox 360's premium pack by $100, bringing it down to $299. The article cites Taiwanese OEM component makers, companies that are making parts for the Xbox 360, which claim to have negotiated deals with Microsoft to reduce production costs by as much as 20 percent. The cut in costs is attributed to increased production, decreasing rate of defective parts, and general price deflation of raw materials."

I don't think this will happen... M$ is happy enough with the 360 price point as it is, and they just announced a Project Gotham 3 game bundle with the 360, so a price drop so soon after that just don't sound feasible.

[GIBSON]

http://www.gamespot.com/news/show_blog_entry.php?topic_id=24840831&sid=6154688

"Taiwanese tech site Digitimes.com is reporting that Microsoft may cut the price of the Xbox 360's premium pack by $100, bringing it down to $299. The article cites Taiwanese OEM component makers, companies that are making parts for the Xbox 360, which claim to have negotiated deals with Microsoft to reduce production costs by as much as 20 percent. The cut in costs is attributed to increased production, decreasing rate of defective parts, and general price deflation of raw materials."

I don't think this will happen... M$ is happy enough with the 360 price point as it is, and they just announced a Project Gotham 3 game bundle with the 360, so a price drop so soon after that just don't sound feasible.
Wasn't microsoft already making losses at the current price point?

[tomato]

Yep, M$ loses US$126 per Xbox 360 unit sold:
http://www.gamespot.com/news/6140383.html

[Kougar]

Wasn't microsoft already making losses at the current price point?

Yes, but what this is saying is that the cost of production has gone down, and their losses per sale of Xbox 360 goes down with the cost of production. I don't think MS would lower the price though, they need to start churning more revenue to turn around the huge losses they've racked up as it is... I bet they will change the price sometime after the 90nm->65nm shrink of the CPU though, as that should also drop the manufacturing costs even further.

[werty316]

The cost of the 360 is more than what they are selling it at and no one is gonna buy is for $700. Games make the money and selling more consoles.