starcraft on 11 January 2008
misteromar makes an interesting point. Even if the component cost estimate is accurate (and somehow I doubt it), it doesn't appear to take into account assembly and transport, which could equate to another $50 or so. On the other hand, we know that Microsoft is making a profit overall on each unit sold (though whether it is a significant enough margin to remain after their next price drop is doubtful).
Edit: The article says production cost which I assume includes assembly. That though, in my opinion, makes the $400 figure all the more unrealistic.
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