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Squilliam on 11 May 2009
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taxman said:
Squilliam said:

I dunno where but they stated that the Xbox 360 Arcade SKU broke even with accessories. This was last year, so with a smaller process on the chips and some other refinements you're saying that they couldn't sell the Premium at the same price with just a HDD and cable being the only difference between SKUs?

 

They probably could, but don't forget that the HDD is a fixed cost that is out of their hands and they probably get it as cheaply as they can.

If they do that they would be cutting it pretty close with the Arcade and they wouldn't be able to cut it any further afterwards.

 

The cheapest HDD price on NewEgg is $35 for a 2.5" HDD or $45 for a HDD which isn't on a special price. Both are 80GB. As it costs no more than $50 to have a HDD, they could likely keep the price within $50 of the Arcade SKU if they so chose. Beyond that they could switch to flash based memory which would scale down in cost extremely well provided they do not increase the HDD space beyond 60GB.

 



Tease.