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My guess is that MS hasn't been able to cut back as much as we think.

The original 360 was plagued with cheap and/or defective pieces and/or messed up manufacturing (Who knows the exact reasons for the RRoD)

Upgrading to more reliable products and/or manufacturing would of cost them money, possibly negating any savings.

And on the cutback topic, I thought it was estimated (from the 360 price cut thread from last week) that the 360 is going to have a price cut just before GTA IV. My predictions where $50 in NA and $100 in Europe



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