BKK2 on 25 April 2008
The Yuan is allowed to float against the dollar to an extent, and is at record highs, but it's still not fully floated. As pointed out already, it hasn't appreciated as much as other Asian currencies which are fully floated.
Still, whilst the 360 is manufactured in China, many of the compononts come from other Asian countries, so the weak dollar affects Microsoft too. Also, the companies that manufacture the 360 aren't Chinese either, they're Taiwanese and Singaporean. Both of these currencies have significantly appreciated against the dollar too.
Clearly the weak dollar affects Microsoft less than Nintendo or Sony, but it's still a pretty significant factor, and is why Europe has seen price cuts and NA hasn't.
