Microsoft Chips In for Your Xbox 360
Rumours of the next generation costing more seem to be quashed - for now
When you pick up your shiny new Xbox 360 at the end of the year, spare a thought for poor Microsoft. The company is so determined to get you playing with its box that it is paying a share of the costs for you.
No, this isn't some fancy cash-back scheme - rather, Microsoft is though to be preparing to sell its new console at a loss, to keep it at a more wallet-friendly price, with the hoped for side effect of helping the console eke out a solid footing before Sony comes in next year with PlayStation 3.
According to research by analyst firm UBS Security, each Xbox 360 will cost Microsoft $375 (£205) to make, but analysts expect it to retail for a mere $300 (£165).
This isn't a new position for Microsoft to be in either, as the company has been losing money on hardware since day one. Researchers estimate that the company has lost more than a billion dollars a year since it launched Xbox in November 2001.
Volatile currency exchange rates mean that Microsoft's helping hand might not be felt as readily in Europe, where it's likely that Xbox 360 will launch at the same price as its predecessor.
Alex Wollenschlaeger
Editor, Kikizo Games
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