If you say so sir.

There are a very, very important benefits for MS and the Consumer if they did this:

• Better Hardware what if a 3rd party was able to take the RROD-machine (although Falcon has done a much better job), and employed smarter, better ideas into the 360, like making sure the GPU/CPU weren't directly on top of the drive? How about a slimmer, better looking 360?
• New Innovations/Features One of the things that we've talked about for quite some time is the whole 360/IPTV intergration. If Microsoft allowed that a 3rd party was able to make the machines, they could re-do the 360 to be 360 game compatible, but allow for DVR-compatability, Blu-Ray, or a host of other options.
• Lower Cost with it being built by other parties, chances are, costs will decrease...Fast. If other parties are able to set their own prices, we could see a DVD-type war go on, and see prices race below $300, $250, $200, or lower quickly, as 3rd parties try to pump out the cheapest 360's available.

On Microsoft's end we see:

• Appeal lets face it, Microsoft isn't the most well-loved manufacturer out there. However, if Toshiba, Samsung, or a game company like Namco got ahold of 360-compatible gaming, the 360 might sell quite a bit more than we see now. It'll be hard to track if it comes to pass, but re-badged 360s might sell well in areas that it currently does not (Japan).
• Licensing Fees Microsoft, like Sony's Blu-Ray, would get a decent sum of money for every 360 licensed out, just like the accessories. Certainly wouldn't hurt Microsoft.
• Developer Support it's a long stretch, but if the device is more prolific in the marketplace, "regular" games-driven 360 owners will see more support for the console in the long run.

So it's a win-win for everyone involved if it came true. If Microsoft doesn't hold all the cards with their system, consumers will win out: just like when off-brand DVD players, and TVs come out. It'll keep the device competitively priced, and in the marketplace for quite some time. Look at off-brand 360 accessories...I can get a perfectly decent hard-wired 360 controller for $25 - $15 less than the official MS controller. A 360 would be the same way, and could even be better than the official box.

Is it possible that someone overheard a discussion about dropping the 3rd party royalties in making devices FOR the 360 rather than making the 360 itself? Having 3rd parties make the 360 is nuts and I can't believe there would even be consideration of this unless MS was exiting the console business. It would make sense, however, to allow 3rd parties to start making devices without having to pay huge royalties -- i.e. wireless devices. There aren't any peripherals outside of the MS ones purely because of the royalty lockdown. If MS was truly trying to get their box open to the more casual crowd, they will need more and more innovative devices/controllers/etc. to please the masses. These would be dance mats, controllers for small hands, keyboards, mice, microphones, and so on...

I like it all, I give this post a 10.1/10. To set it above games like GTAIV and such pretenders.

Actually the critical factor in this is how they go through the process nodes and shrink the chips/combine them as their roadmap indicates. As of right now, the Jasper refresh is the first one I could consider good enough for first parties to be able to use.

Decent reasons , I still don't see it happening.

It fits how they operate. Microsoft operates by getting third parties to build computers with their operating systems. They got there because of that fact alone. Apple builds their own hardware for their operating system and they almost went bankrupt IIRC.

Its not much harder to imagine that strategy being applied to consoles, especially as the Xbox360 winds down as the "main" system after they release the next one. Whats the harm in letting other companies see what they can do with it?

Edit: Yes! There were in car PS2's so if Sony did it, then why wouldn't Microsoft?

I had a 3DO

This would not actually be a bad idea as long as they were all held to the same standards...

Uh... Better than Microsoft standards...

This is how VHS beat the superior Betamax format and this would win for MS over Sony easily. Not so sure about beating Wii but it could be possible if it becomes a popular feature.

lol. That's exactly the reason it's good. When you have competition for the same thing (such as a 360), Microsoft will be forced to make a better product.

I think that's it's unlikely MS will do this, but one can only dream: I'd rather see them do this than do a "real" price drop...Merely because we'd see $200 Arcades very, VERY quickly, and Sony and Nintendo could not addapt very quickly to this structure, unless they pursued the same system.

Everyone sees it, it's just that we feel embarrassed to even have to explain it to you. Anyways, it appears you have smarted up on your following reply.