marc said:
MS makes a TON more money from royalties than from hardware sales due to their high attach rates. It makes sense to drop the price as much as possible to take market share and sell more games especially if they can make the xbox consoles for cheap. |
And MS would make even more money on the 360 if they didn't drop the price. Revenue is important, and investors look at that which is the reason why MS would not cut the price after selling 30 million consoles in on year. Just look at how Nintendo profits off their hardware, it's crazy but you don't see them dropping the price because it wouldn't make business sense. Why drop the price if your console has the biggest attach rate and selling like gangbusters?







