Oh and before anyone claims it, I love the 360, not saying it's not powerful, just saying Microsoft sucks at DESIGNING hardware, not making it powerful. Anyone who claims they even remotely know what they are doing is lying.
They spent over a billion dollars trying to fix the RROD, and fired the original team who designed it because of it. However the original teams design was basically what I described, it was Microsoft putting pressure on them to make it as cheap as possibly which made it that way.
Not that it's cheap, original 360 cost 600$ to produce and they sold it at a loss, they just didn't want to sell 700$ machine at a loss when they could sell a 500 or 600$ machine at a loss.
PS3 manufacturing costs for 950$, they sold it for 600$, for contrast.
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