How come people say the Xbox 360 can't have any more price cuts?

[Million]

nightsurge said:

^So you are saying that Microsoft won't cut the price because cutting the price would be bad for them? That's odd..... seems like a winning move since it will still be profitable or near breaking even after the price cut.

And I don't know why you think "Sony's proven history in cost reduction" has any merit. All components are manufactured and over time EVERY manufacturer reduces the cost of production, especially on CPUs/GPUs which, by the way, are not made by Sony or MS, so really your argument that Sony will be able to reduce the production costs based on their history is kind of silly considering their very limited control over the situation.

Your very closed minded in thinking the costs of the CPU/GPU are the only things which determine the cost per unit of a console , there's probably hundreds of factors which could affect Sony's ability to reduce the PS3's unit cost.

 

-Better , Cheaper Material( Casing, Fans , Cables, Buttons , Non-Computing compenents etc)

-Better Distribution

-Effective use of Outsourcing

-Effective workforce management ( Flexible workforce that varies with demand for example)

-Healthy levels of capacity utilisation

-Highl levels of quality control

 

I could go on but I won't .