Another interesting part of the article is that MS is also looking further into the future with 45nm tech, and the possibility of a REAL redesign and internalizing the power brick (speculation).

"Looking a little further ahead, Microsoft are expected to move to a 45-nanometer process which will reduce component size still further. Once this happens, we could expect to see a properly redesigned unit along the same lines as the PSOne and PSTwo released by Sony. Hell, they may even stick the power-brick in side."

no probelm, I´m not to good with numbers myself (I wasn´t sure if the falcon was 50% cheaper all in all or just the new parts eather), still I liked the idea of a 50% price drop, that would be like the A-bomb of the console war, people would go apeshit if that kind of thing happend, I´d love it.

component costs = cut by 50%
manufacturing = costs the same
packaging = the same
shipping = the same
microsoft = want profit

consumer price cut = 25% .... max?

400 * 25% = $100 ... that's all they need to cut to have a lasting surge in sales.