Words Of Wisdom said:
The dollar value is a reflection of the import/export relationship a country has relative to the outside world. Meaning that if the 360 were entirely US-made and distributed it, it would be unaffected by the flucutations within the US. However, not all the parts are made in the US and the console itself is likely not even assembled in the US (correct me if I'm wrong 360 owners) which means that all the dollars that flow from Microsoft to companies outside the US become weaker meaning Microsoft needs to shell out more (except in explicit existing contracts) for the same product. The end result will be that Microsoft's manufacturing costs go up so a price cut becomes more unlikely. Of course, I expect Microsoft to have fixed price contracts with several of its partners which will negate this to an extent (shifting the loss to Microsoft's partners). |
Alright, I figured as much. Hardly anything is made completely in the USA nowadays it seems. =P
