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KHlover said:
If this true, wth will it cost? These specs are better than most gaming PCs right now. No way they can even build it for under 700€.

MS is getting discounts left and right and they will surely sell it at a loss at launch. Probably even a hefty one.

http://www.techpowerup.com/img/12-09-17/78a.jpg
~200$ MSRP for the 8850 which seems to be on the same or maybe even slightly higher level as the 7870

Not that expensive GPU (will be a custom one anyway which is likely to use less power etc.). 8GB RAM costs next to nothing. 640GB HDD ~$50 at retail. Add a case a mainboard, other electronic pieces,Blu-Ray drive and manufacturing costs and the only other expensive piece would be the CPU.

Plus unknown production costs of Kinect 2.0 (the first Kinect only costs about...$50 or so to produce)

They could probably sell it at ~$500 without or only tiny losses. $450 could be the retail price. (maybe even less depending on their strategy)

Obviously they could also make a second SKU with a 1TB or 1.5TB HDD and bundle a cheap game with it (or XBL subscription) and sell it for $500 which could dampen the losses.

Talking about pricing strategy, I've also read that they want to sell the console at a much lower price but with a 2 year mandatory XBL subscription.