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iSuppli: Xbox 360 Costs Continue Decline


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#1 Xbox-Scene

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Posted 07 May 2007 - 03:49 PM

iSuppli: Xbox 360 Costs Continue Decline
Posted by XanTium | May 7 10:49 EST | News Category: Xbox360
 
From next-gen.biz:


Production costs of the Xbox 360 Elite have dropped to $323.30 per unit based on the latest estimates by research firm iSuppli.
The lowered production costs are good news for Microsoft, while Sony's production costs remain far higher than the PS3's retail price.

The total cost of producing a 60GB PS3 stands at $840.35 compared to $323.20 for an Xbox 360 Elite. The 60GB PS3 retails at $599 while the Xbox 360 Elite can be purchased for $479.


Full Story: next-gen.biz




#2 Merkaba

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Posted 07 May 2007 - 03:16 PM

price drop please jester.gif

#3 pirichios

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Posted 07 May 2007 - 03:19 PM

lol this is crazy, maybe by christmas if the core droped to 199 i would pick up a second one

#4 epsilon72

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Posted 07 May 2007 - 03:23 PM

How about using some of that profit margin to fix the myriad of reliability problems the 360 has?

#5 Merkaba

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Posted 07 May 2007 - 03:36 PM

QUOTE(epsilon72 @ May 7 2007, 03:59 PM) View Post

How about using some of that profit margin to fix the myriad of reliability problems the 360 has?


profits from xbox live alone should have taken care of that.

I am really surprised there has not been a price drop. Its been out so long and has been rather successful, it really is time. Especially with summer rolling around and students getting temporary jobs.

#6 Molten Universe

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Posted 07 May 2007 - 03:39 PM

QUOTE(epsilon72 @ May 7 2007, 10:59 PM) View Post

How about using some of that profit margin to fix the myriad of reliability problems the 360 has?


Agreed, not that i've had any problems at all, but if MS fixed the big well known issues (ROD) in the factory, more people would buy without hesitation. wink.gif

#7 bucko

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Posted 07 May 2007 - 04:03 PM

I guess the Elite is a nice little money earner for MS Xbox.

#8 celinedrules

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Posted 07 May 2007 - 04:44 PM

QUOTE(Merkaba @ May 7 2007, 07:12 AM) View Post

I am really surprised there has not been a price drop. Its been out so long and has been rather successful, it really is time.



If it has been successful at the price it's at now, what reason would they have to lower the price?

#9 mlapaglia

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Posted 07 May 2007 - 04:46 PM

QUOTE(celinedrules @ May 7 2007, 12:20 PM) View Post

If it has been successful at the price it's at now, what reason would they have to lower the price?


agreed.

#10 eyric101

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Posted 07 May 2007 - 04:50 PM

QUOTE(Molten Universe @ May 7 2007, 11:15 AM) View Post


Agreed, not that i've had any problems at all, but if MS fixed the big well known issues (ROD) in the factory, more people would buy without hesitation. wink.gif


Do we know they havn't? Unfortionatly Microsoft is not going to admit they have a problem, no each of the thousands of xboxs that have the same exact problem were caused by "unrelated" circumstances. So since Microsoft refuses to admit the problem how can they possibly tell us they fixed it?



#11 Merkaba

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Posted 07 May 2007 - 05:05 PM

QUOTE(celinedrules @ May 7 2007, 05:20 PM) View Post

If it has been successful at the price it's at now, what reason would they have to lower the price?



simple, now there is much more competition. It would also help sell accessories, hd-dvd anyone?

im just saying i would like to see it happen (wouldnt we all), and theres ever growing reasons why they should.

#12 Darkjasper

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Posted 07 May 2007 - 05:28 PM

Ouch, I knew sony was losing money but not that much.

#13 psychoace

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Posted 07 May 2007 - 05:43 PM

So the PS3 is the better deal then? for 600 bucks I am getting $800 worth of machine while for $475 I am only getting $350 worth of machine.... The math is hard.

#14 Merkaba

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Posted 07 May 2007 - 05:53 PM

QUOTE(psychoace @ May 7 2007, 06:19 PM) View Post

So the PS3 is the better deal then? for 600 bucks I am getting $800 worth of machine while for $475 I am only getting $350 worth of machine.... The math is hard.



just because something is more expensive doesn't mean it is always better tongue.gif

ps3 does come with next gen movie playback and uses a lot of bleeding edge technology, hence why I am saying 360 should probably lower their price, im sure most people will start to catch on.

Edited by Merkaba, 07 May 2007 - 05:54 PM.


#15 d-range

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Posted 07 May 2007 - 06:08 PM

QUOTE(celinedrules @ May 7 2007, 06:20 PM) View Post

If it has been successful at the price it's at now, what reason would they have to lower the price?


To make it even more succesful, and take some momentum away from the competition? Consoles are strange goods, it's not like with other stuff you can sell: that if you sell a certain volume at a certain price you will get the highest profits. With consoles, market share, software attachment rate, 3rd party support, micropayments, number of people who will stick with your brand in the next product cycle, etc. they all matter more than simple 'profits' on each box sold. I think it would be in Microsofts best interest to drop the price, and I'm quite surprised they didn't drop it earlier, like just before the PS3 was launched. They would most definitely have moved a lot more consoles over the last few months.

But then again, there's probably a reason behind this. I'd expect them to drop the price in june/july/august, and launch a few new '360 + killer game'-packs, e.g. a Forza Motorsport pack, a Bioshock pack, a 'the Darkness' pack etc...

Edited by d-range, 07 May 2007 - 06:10 PM.





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