Xbox 360 to be assembled in Brazil = up to 50k units per week + 40% price drop

[mrstickball]

rrrnearrr said:

mrstickball said:

rrrnearrr said:

mrstickball said:

I don't think Sony or Nintendo have indigenous factories in Brazil. That is a huge advantage for Microsoft. Its also the same reason the Genesis has survived there for 10 years after it died in the US.. They made a locally-produced version for Brazil, and it sold gangbusters.

Alternatively, the return on such a system may be questionable - I am unsure how many units the X360 will sell in Brazil. It will help, certainly, but Brazil isn't a nation with a huge number of buyers that can afford such an expensive system. But rather, it may be a longer term strategy to win Latin America...Which could swing a few million units each generation to Microsoft.

I don't know what do you mean by "indigenous", but Sony does have factories in Brazil, they just don't produce the ps3 here, they import it and put a new box and cable here.

If they have to import them, then they are likely subject to huge tariffs, thus the massive costs vs. a 360 which is built in Brazil.

Yeah, I know that. But I wanna know what in an indigenous factory... What is it?

www.m-w.com:

 

Definition of INDIGENOUS

1

: produced, growing, living, or occurring naturally in a particular region or environment <indigenous plants> <the indigenous culture>

The factory is producing an indingenous version of the Xbox 360. Its being built and assembled in Brazil, likely using local resources. Because of this, its not subject to the massive tariffs that the Brazillian government lobbies against foreign products. This makes it much cheaper to sell to the consumer.