| obieslut said: Last quater the games division was in the red, now microsoft are talking about price cuts and everything else. but what i am thinking is can they afford it. to me it just seems like they are in the games business just to try and hurt sony but they will have to make a profit at some point because if no then why are they in this business. they are billions of dollas in the red with the xbox brand and with the way they are going they are only going to get even deepr into the red. I think if they kep up lik this then they are not going to last in the games market too long
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Its very likely that the price cut corresponds the new Jasper chip, which will be smaller and smaller chips correspond directly to lower manufacturing costs. Microsoft's other big price-cut also corresponded roughly to the introduction of the falcon chip (which was then smaller and less expensive than the zephyr chip). If this is the case, then all Microsoft is doing is keeping its profit margin roughly steady.
