The premium 360 reportedly cost MS $323.30 to manufacture as of last November. A 50% reduction in cost would allow MS to sell the 360 premium at the same price point as the Wii.

mrstick, you are right, but I just can´t see a price drop over 100$ comming our way, I really wonder if they are waiting for Halo3, wouldn´t that be a waste of hype though ?, I mean Halo3 is going to sell some systems anyway,why not use it to get those old 360s out of the way an then get a brand new hype when sales go down again, say thanksgiving or christmas ??? Personally I hope the Falcon+price drop is comming very soon, since I do whant a 360 for my graphic-hore needs (nododys perfect, gameplay still rules supreme)

The 50% cost reduction is probably only in reference to the cost of the chips themselves, not the whole x-box. And, at least in PC's, the main CPU usually isn't the most expensive part.

MS needs a price reduction. And once the "Falcon" hits the market, I'll be trading in my old box (if it still works) for a newer one.

The article never pointed to a 50% price cut, in fact it states they don't mean that. It is only cutting the component costs, there are other costs involved in console production and shipping. Not to mention other costs such as marketing.

Ding ding ding, we have a winner!

It's not a 50% price drop on the entire unit cost... Just the CPU and GPU. Those are the only units that will switch over (RAM might, but I doubt it... RAM is usually behind the curve in process). Of course, those two components make up over 50% of the unit cost in total so it will still save MS a boatload to switch to 65nm.

I'm actually surprised that it is taking them this long to do this. IBM has had 65nm process up and running for nearly a year IIRC.

You need to think about it in terms of area.

Right. Its just main mobo costs, and not ram, DVD, hardshell case, ect.

However, most of that stuff has come down in costs too.

IMO, the Falcon should reduce costs to somewhere near $250-ish for the X360 Prem. Enough to make the Prem easily profitable at $300.

Really though, even @ $300, MS could really kill the Wii and PS3 surges by packing in a decent game with the prems or elites.

I agree. This holiday microsoft needs to do everything in their power to put Sony away. And if you can get an X360 premium and the HD-DVD drive for less than the PS3, they could do it.

The wii isn't going to stop selling even if the 360 comes down to its price point. The price isn't what is selling the Wii, its the focus on the casuals.

3 Skus later ,maybe Microsoft will find the way to create a good console.The X360 Core has lots of problems ,the X360 PRemium even more ,the Elite still has RROD ,and now the "Falcon " ....

I wont buy one until this problem is resolved .

As for the saving in cost I hope it is true it can save so much money .After all Sony have started to produce 65 nm Cell way before than MS so they could lower the price before them .