| Squilliam said: For all those who are wondering about how Microsoft can afford such cuts.
Isuppli lists the cost of a 20gb Xbox 360 @ 320 and the price of the Arcade was ~$280. November 2006 so thats the Zephyr model I believe. Note1: The cost of the motherboard is very steep. This is the cost total cost for a fresh mainboard with everything attached. Cost scaling since then silicon components: GDDR3: Unlike the PS3 - the Xbox 360 uses commodity memory, so the costs for this have likely halved in the last two years. GDDR3 is used extensively. The 8 512 mbit chips are still being used in mass production for desktop GPUs. CPU: Die size has halved. 50% smaller = 50% cheaper if you take into account heat sink cost reductions offsetting the fact that the testing/packaging costs do not scale and assuming a similar yield which is reasonable. GPU: Costs would have more than halved assuming the same scaling. They are integrating into one chips where there was once two. So the reduction in testing/packaging/manufacturing/heatsink costs are quite significant. Also it removes an important point of failure so the reliability/suport costs would be far lower. Motherboard: The power supply components on these motherboards are expensive. A typical desktop motherboard has to supply only a CPU as GPUs come with their own power regulation circuitry. An Xbox 360 motherboard is much more complicated than your standard motherboard as it contains the ram/gpu/cpu all on the same board- these changes reduce that complexity. Cost scalings. If everything else remains the same except the motherboard costs are halved then according to the above table the Xbox 360 Arcade would cost $180 to manufacture and the 60gb would cost $230 to manufacture. The power supply is probably $5-10 cheaper but I didn't bother to include it. The base model would likely cost ~180 and the Premium model would likely cost ~230 to manufacture. |
Unfortunatley that is a series of weak sources and approximations , in reality you have no idea how much Microsoft their consoles cost neither do you know how much the PS3 consoles cost currently.
Whatever the case Microsoft aren't going to be making alot of profit of these consoles if they are actualy making a profit. Microsoft continues to drive down the cost making it look like the cheap option and continues to support the PS3's image as the higher spec , premium console.
it apears the Microsoft has ditched the pursuit of profitability and is instead gunning for marketshare .
| Million said: Unfortunatley that is a series of weak sources and approximations , in reality you have no idea how much Microsoft their consoles cost neither do you know how much the PS3 consoles cost currently. Whatever the case Microsoft aren't going to be making alot of profit of these consoles if they are actualy making a profit. Microsoft continues to drive down the cost making it look like the cheap option and continues to support the PS3's image as the higher spec , premium console. it apears the Microsoft has ditched the pursuit of profitability and is instead gunning for marketshare .
|
Weak arguments huh? Isuppli is actually a credible source.
Also if a chip is 50% smaller it likely costs ~50% less to make. (Assuming similar yields) which in this case is true as the process is mature.
If people know that an Xbox 360 plays games exactly the same as a PS3 it actually makes the PS3 look overpriced rather than the Xbox 360 looking cheap.
Btw - The Xbox 1s image as higher spec/reliable/bla didn't help it.
Tease.
![[Prototype]](https://www.vgchartz.com/games/boxart/2846586AmericaFrontccc.jpg)
my 26 million prediction for the end of the year is so coming true!
excellent move my microsoft again, the only company that can stop sony not by innovation, but with money, lots and lots of them.
| Neos said: my 26 million prediction for the end of the year is so coming true! excellent move my microsoft again, the only company that can stop sony not by innovation, but with money, lots and lots of them. |
Its like you think of money as people. :-o So if thats the case then Sony and Microsoft are mass murders. Or you could say that Microsoft as a whole has a population control issue and the Xbox endeaver is just a way to solve it. 
Tease.
MS is doing what they did with MS windows. Force the 360 down everyone's neck (by giving it away cheap) and once it is in every house hold, the next gen will see a more expensive 360 to bring the money back with less price cuts.
The problem here is, if you want a ps3, would you settle for a 360 just because it's cheaper?
Example: I want the new Nissan GTR and it costs £40,000, will i then settle for Mitsubushi EvoX which is £30,000 when i can afford to buy both? The answer in most cases is no.
However, with the price differences here, it is quiet likely gamers will end up having both consoles. The options prior were a Wii and then a 360 or ps3. Now it seems it will be a ps3 or 360. More then killing the ps3 market, I think they will also be biting a chunk of Ninty's ass. This is America's Hiroshima in the console world!
If this is true, and the 360 still cannot sustain a healthy weekly lead against the PS3 (until Sony cuts their prices) then Microsoft will have shot themselves in the foot. They need to make sure these price cuts are worth it or else it'll just turn into a fire sale.
So finally a console this gen is down to the launch price of the GameCube.
i am 100% that i will buy my second XBOX360 by the end of the year...
| Fei-Hung said: MS is doing what they did with MS windows. Force the 360 down everyone's neck (by giving it away cheap) and once it is in every house hold, the next gen will see a more expensive 360 to bring the money back with less price cuts. The problem here is, if you want a ps3, would you settle for a 360 just because it's cheaper? Example: I want the new Nissan GTR and it costs £40,000, will i then settle for Mitsubushi EvoX which is £30,000 when i can afford to buy both? The answer in most cases is no. However, with the price differences here, it is quiet likely gamers will end up having both consoles. The options prior were a Wii and then a 360 or ps3. Now it seems it will be a ps3 or 360. More then killing the ps3 market, I think they will also be biting a chunk of Ninty's ass. This is America's Hiroshima in the console world! |
when was windows cheap in the uk i missed that 1
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