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starcraft said:

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. 


Not that I doubt it, but how do we know the X360s are profitable now? Is it your guesstimate or did you get it from a reliable source?