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superchunk said:

While I agree with your prices for the base models, Natal won't be $100.

Recently MS mentioned that they removed the logic chip from the Natal system and instead they are using the 360s chips to help out. That was most definitely to reduce costs. I bet Natal is closer to $60 standalone so I bet it will be packaged w/ 360's at $50 more than their base prices.

It mostly depends on how much it costs Microsoft for an Xbox 360 Slim and how much it costs for the camera oh and how much of a margin (positive/negative) they are willing to take.

There are also some other factors like royalty payments. If for instance they drop DVD playback/backwards compatibility they'd probably save about $10 per HDD equiped unit and $5 for the Arcades from that. On top of that it also depends on what agreements they made with IBM/ATI as far as how royalties would scale over time which we cannot truely know and noone would care to leak.

Overall the Slim drops 1 or 2 of the CPU chips and consolodates them, has a much simpler board layout and likely fewer layers and will probably have a much simpler PSU as well as a cheaper case and a smaller box to ship. It all adds up pretty good actually.



Tease.