Why the Scorpio will sell for no more than $399 (if its 6tflops).

[Snoopy]

Eddie_Raja said:

Snoopy said:
The reason why Microsoft didn't release scorpio this year is because they are waiting for it to be cheaper.

Exactly, and people don't seem to get this.   If it launched now it would probably break even at $550, and they want to profit at $400.  

 

Actually what this tells me is they don't really care anymore if they lose marketshare.  They should have launched this NOW for $500 and taken the loss.

If they launch the console now at $550 they will take a huge beating. Even Playstation with it's big brand name lost a lot of money because of that. Not only this, but it takes time to do the R&D and Marketing. They want the best bang for their buck and they can't get it right now unless they spend a lot of money and hope people will buy it for around 600 dollars which isn't happening.