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> Hardware Analyst Breaks Down Cost Of Xbox 360’s 120GB Hard Drive
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post May 6 2008, 04:33 PM
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Hardware Analyst Breaks Down Cost Of Xbox 360’s 120GB Hard Drive
Posted by XanTium | May 6 11:33 EST | News Category: Xbox360
 
From multiplayerblog.mtv.com:
[QUOTE]
iSupli representative Krishna Chander expects the hard drive came from electronics manufacturers Toshiba or Seagate . When the hard drive ships to retail, it comes pre-loaded with starter software (i.e. Xbox Live Arcade trials) and "specific Gaming Instructions and some levels of the OS," said Chander.

Unlike an off-the-shelf drive that can simply be loaded into your standard PS3, Chander explained, the Xbox 360 drive's pricing also includes color tuning and packaging. This begins to drive the price up from what you might see at an online retailer like NewEgg.

The software-loaded drives are then sold to what's called Value Added Resellers (VARs). These folks take the base drives and apply the casing and packaging. iSuppli expects VARs purchase the drives for $75, before charging $5 to add their part to the final package that ends up appearing at your local games store.

These drives are then delivered to Microsoft. iSuppli believes the markup on the drives could be as much as $20, making the drives $100 a pop for Microsoft.
Microsoft then sets a suggested price for retail. In this case, it's $179.99.
[/QUOTE]

Full Story: multiplayerblog.mtv.com




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etrain1984
post May 6 2008, 05:24 PM
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Well, we already knew it but now it is confirmed. Microsoft is officially raping xbox 360 customers who purchase the hard drive as an add-on. ph34r.gif
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bucko
post May 6 2008, 05:32 PM
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So 80$ profit on each 120GB HDD drive sold, I'm glad I got the elite no need to worry if you need to go out and buy the drive seperatly. I'm pretty sure they take a loss (or there 100$ mark) in the Elite package to keep it compeitive with the other sku's?
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Ranger72
post May 6 2008, 05:39 PM
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I would like to see the markup on their $99 wireless adapter for the 360.

I just put a 320GB hard drive into my PS3 for $139.99 and loaded it full of movies and TV shows without even voiding my warranty.

I think M$ needs to learn a few lessons from Sony here.
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FUCKMICROSOFT
post May 6 2008, 05:47 PM
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so wait. it's been a while since i last looked into it, but is it possible to switch out a premium 20 gig, ghost the drive and apply the SS patches/ whatyever from the 20 to allocate a 120 gig newegg bought replacement?
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xboxuser32
post May 6 2008, 05:53 PM
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QUOTE(bucko @ May 6 2008, 06:08 PM) *

So 80$ profit on each 120GB HDD drive sold, I'm glad I got the elite no need to worry if you need to go out and buy the drive seperatly. I'm pretty sure they take a loss (or there 100$ mark) in the Elite package to keep it compeitive with the other sku's?



$80 profit for the retailer, not MS. MS is only making $20. Retailers like Gamestop are the ones ripping you off.
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CoLD FiRE
post May 6 2008, 06:18 PM
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I'm confused uhh.gif so the article says that these 120gb HDDs cost MS 80$ then MS sells them for 100$ to the retailers and they(the retailers) sell them for 180$ to the end-user, right? isn't this the official price from MS, they sell them on their official Xbox website for the same price as the other retailers, which means that MS is ripping everyone off. am I wrong? ohmy.gif


sorry for my English.. happy.gif
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sirsmacketh
post May 6 2008, 06:27 PM
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QUOTE(FUCKMICROSOFT @ May 6 2008, 01:23 PM) *

so wait. it's been a while since i last looked into it, but is it possible to switch out a premium 20 gig, ghost the drive and apply the SS patches/ whatyever from the 20 to allocate a 120 gig newegg bought replacement?


http://technofranki.blogspot.com/2008/01/x...ddrive-and.html

I think it's funny your name is F*CKMICROSOFT yet you support them by having a 360. smile.gif
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XanTium
post May 6 2008, 06:30 PM
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QUOTE(Ranger72 @ May 6 2008, 07:15 PM) *

I would like to see the markup on their $99 wireless adapter for the 360.


funny note here ... the chipset they use in the wireless adapter is the same as in the OLPC ...
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Flagg3
post May 6 2008, 06:48 PM
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QUOTE(xboxuser32 @ May 6 2008, 01:29 PM) *

$80 profit for the retailer, not MS. MS is only making $20. Retailers like Gamestop are the ones ripping you off.


The article is written poorly, so it's not really clear if it is stating that the cost to Microsoft is $100, or if that is what they sell them for, but it does seem very doubtful that Microsoft would set the MSRP at $180 if they were giving them to retailers for only $100, it's inconsistent with the markup on every other accessory that they sell, so assume that the cost to retailers is probably closer to $140.
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Flagg3
post May 6 2008, 07:09 PM
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QUOTE(etrain1984 @ May 6 2008, 01:00 PM) *

Well, we already knew it but now it is confirmed. Microsoft is officially raping xbox 360 customers who purchase the hard drive as an add-on. ph34r.gif


They sure are, and the price disparity is only going to get worse.

Microsoft is going to have to seriously reconsider their current strategy when it comes to storage - and I honestly don't see any easy way around it for them unless they come up with a way for people to add their own hard drive to the Xbox 360.

As an example: When Microsoft made the argument that the 120GB MSRP was a fair price, their argument was valid:

http://www.next-gen.biz/index.php?option=c...19&Itemid=2

The problem is that hard drive prices fall very quickly. Whereas a 2.5" 120GB external drive sold for around $180 when they launched the drive, it currently retails for less than half that price:

http://www.walmart.com/catalog/product.do?product_id=8251553

Next year, the price disparity will be even greater. What is becoming more and more obvious is that the Xbox 360 in it's current form is woefully inadequate when it comes to storage space. Microsoft will most likely never add a blu-ray drive to the platform, and the alternative for downloading HD content with the extremely frustrating HD storage limitations will only get worse a year from now when downloading content is even more pervasive and the cost to add 500GB or more to the PS3 will be even less than the cost of the 120GB drive for the Xbox 360.

There is honestly no point for Microsoft to ever add a blu-ray player to the Xbox 360. It made more sense when prices for standalone players were higher, but as prices on standalone players inevitably drop, it will become less and less of an issue. Because of the fact that Microsoft can't realistically use the space for game content, the added value of a movie player add-on is not high enough for Microsoft to bother.

As for storage space, the only realistic option that Microsoft has is that they will eventually be FORCED to allow people to use external USB hard drives for additional storage. While not as pretty as the snap on drive, it's a quick and easy way to level the playing field against the PS3, and it is the only realistic option for the Xbox 360 to effectively compete, and it will once and for all end the perpetual problem that they have when being compared to the cost of adding storage to the PS3.
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eduardor2k
post May 6 2008, 07:10 PM
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It seems that MS is getting a lot for every hard disk sold, to bad their pricing is so aggresive, they could sell a lot more of those if their price where right.


One question:

Can you connect to your xbox 360 an external hard disk, using USB (USB case for the Hard drive).
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mikeraach
post May 6 2008, 07:41 PM
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QUOTE(eduardor2k @ May 6 2008, 07:46 PM) *

Can you connect to your xbox 360 an external hard disk, using USB (USB case for the Hard drive).



Yes, which is why i dont understand why everyone cares so much about their overpriced drives. I got a 500gig external for $80, and it works on my desktop, laptop, and 360...
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CoLD FiRE
post May 6 2008, 07:50 PM
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QUOTE(eduardor2k @ May 6 2008, 09:46 PM) *

It seems that MS is getting a lot for every hard disk sold, to bad their pricing is so aggresive, they could sell a lot more of those if their price where right.
One question:

Can you connect to your xbox 360 an external hard disk, using USB (USB case for the Hard drive).


Yes, you can. but you can't store marketplace contents or game saves on it.

This post has been edited by CoLD FiRE: May 6 2008, 07:52 PM
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Shonk
post May 6 2008, 08:56 PM
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this is just some joe pulling figures out of his ass

he didnt even look into who supplies the drives

fujitsu for the 120gb's btw


they pay alot less than $75 per drive

i can buy a 120 gb for that sort of price

you think microsoft buying in loads of them are paying that?


anyway what about europe

its $260 here

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