TheRealMafoo on 08 April 2008
jman8 said: @ TheRealMafoo: "MS does not reduce the cost of the 360 because it does not cost that much less to make today than it did when they release it." I'm willing to bet production costs per system have dropped more than you think. The problem is that MS set aside $1billion for RROD repairs. In other words, for every system MS has sold so far, $50 have been set aside to repair said systems. There goes your price cut Gebx. |
I consider that as part of the cost of the unit.
So for example, if the cost of shipping, labor, and replacement parts is $100 for each and 30% of them fail, you have to add $30 to every unit sold.