How Microsoft Is Helping You Get a 360
The plan was to make sure that the company didn't lose money on manufacturing the hardware again. The plan has failed.
They say you can't get something for nothing, but in the case of the Xbox 360 it seems that you're getting more for less. While Microsoft was clear that it wanted to make money off each Xbox 360 it sells (as opposed to losing money with the Xbox), a recent report suggests Microsoft is still footing part of the hardware bill for you.
Tech firm iSuppli took apart the Xbox 360 and worked out how much it would cost to make the console based on the cost of the components. It turns out that the $399 Americans are paying for the Premium pack, which includes a hard drive and a wireless controller, is quite the bargain, as iSuppli estimates that the console costs around $525 to make.
Things are a bit better for the Core system, which does not include the hard drive and comes with a wired controller. According to Portelligent, another US tech firm, the cut down version of the Xbox 360, which sells for $299, only costs $310 to make.
The feeling is that Microsoft will push the Core system as the Xbox 360 becomes more popular and then gets its money back from you when you buy wireless controllers, a hard drive or any of the other myriad accessories.
Alex Wollenschlaeger
Editor, Kikizo Games
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