Microsoft Focuses On Reducing Production Cost Of Xbox 360
- November 27th, 2006
- Read 1627 times
- 4 Comments
You have to look at the economics. You have to ask the question, over the life cycle, who has the cost advantage? Who can price most effectively? Who can reach the price points quicker? That has a huge impact on what gets driven. Because we were out there first, we have a bigger installed base of consoles. We can drive down the manufacturing curve sooner and faster. And because we designed a box that was fundamentally easier to manage on costs, we’re going to have that advantage.
- Microsoft President of Entertainment Robbie Bach
Since the Xbox 360 has been out for a year now, it’s no surprise that Microsoft’s console is currently the leading next gen console, which means it’s about time for the retail price of the console to lower. There are already many places that offer rebates and cheaper bundles for the console, but you can’t walk into a Best Buy or Circuit City and get an Xbox 360 premium console for under $399. Microsoft is now focusing on reducing the manufacturing price of the Xbox 360, but there’s really no promise on when we can actually see a price drop. I was hoping Microsoft would have it done by Christmas this year, as the 360 would make an awesome present for someone who wants to get into next gen gaming, and a price tag closer to the Wii’s $250 would certainly give it an extra push.
Microsoft Focuses On Reducing Production Cost Of Xbox 360 [mcv uk]
webonics (Who am I?)
1 year ago
I wouldn’t be surprised to see the system drop retail at the end of January. By doing so, they would continue to generate the premium price through the holidays where only one other option (Wii) is available at a lower price point. Raising the price at the end of January would allow Microsoft to capitalize on the continued supply shortage of Playstation while increasing their install base via a lower price point. Sony is not expected to stabilize demand until March-April. Microsoft will milk the dollar as long as possible but who can really blame them…I think everyone would given the opportunity.
Wubby
1 year ago
Well what else would you expect from a company trying to turn a profit? My guess is that there will be a price drop smack in the middle of the holidays and then it might go even lower in Q1 2007 because of the new 65nm Parts
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jenny (Who am I?)
1 year ago
i don’t think the xbox 360 price will drop by the end of this year, given that it’s very hard to find a ps3 or wii in stock.
btw xpbargains.com has a good ps3 tracker here http://www.xpbargains.com/ps3_locator.php
they also have a wii tracker at http://www.xpbargains.com/wii_locator.php. more stores available than other trackers.
MrRobertson
1 year ago
I really want to get an Xbox 360 for Christmas, but i doubt i will since its 400dollars, So i would have to buy my own. I dont want to wait till the end of January so i guess ill wait til christmas then if i dont get it ill buy it…
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