Breaking down the cost of Xbox 360's 120 GB hard drive

Posted May 7, 2008 at 3:11AM by QJ Staff Listed in: Xbox 360 Tags: Amazon, GameStop, Microsoft, Seagate, Toshiba, Xbox Live Arcade
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Breaking down the cost of Xbox 360's 120 GB hard drive - Image 1We got you guys helpful information that explains why the Xbox 360's 120 GB hard drive costs about US$ 179.99. Krishna Chander, a hardware analyst from iSupli, revealed the various factors that contributed to the HDD's price.

According to Chander, the hard disk must've have been from electronic manufacturers such as Toshiba or Seagate. These HDDs, when shipped, come fully loaded with starter software (Xbox live Arcade Trials) and "specific Gaming Instructions and some levels of the OS."

Chander added that the pricing of the gadget also included color tuning and packaging. These disks that have pre-loaded software are sold to Value Added Resellers. These people purchase the items for about US$ 75. Then they add an additional US$ 5 for the application of casing and packaging. Finally, these drives end up in your local retailers and local games store.

Chander believes that the markup is about US$ 20, which can pump the price to about US$ 100. Microsoft sets a standard retail price, such as US$ 179.99. Now, retailers have the option to manipulate the price, either making it higher or lower. Amazon has set the price to US$ 149.99, while GameStop still has retained it to about US$ 179.99 on their website.

There you have it. That's the reason why the hard disk for the console is priced as such. What do  you guys think? Overpriced? Cheap? Share your comments below.

Via MTV Blog

 
 
 

Comments

by rollypoly - 2008-05-07 10:24:42
jesus

they expect people to pay such an outrageous price for that much space, AND fill that space with paid for content... coming and going... now that the ps3 is actually worth purchasing, and so much easier to upgrade storage on... M$ should reconsider it's stance on hdds.
by Nevers - 2008-05-07 10:31:27
totally true

The price was outrageous when they launched the 120gig HDD and it's Rtarded that it hasn't declined. The 20gig that came with mine only ends up being 13gigs or so after install which is inadequate if you take much advantage of XBLA. Peopl who bought the Core SKU are even more ripped off
by rollypoly - 2008-05-07 10:57:07
heheh

i had to buy a core if i wanted a 360 @ launch. i did purchase a 20gig, but have since swapped it with a hacked 120gig. still not happy however i want 500gigs...
by SuperQuest - 2008-05-07 11:15:47
Remember ...

I remember M$ fanboys saying the PS3 was too expensive ... funny but with news like this we don't see any comments when it's about overpriced stuff about the 360 My two cents
by Nevers - 2008-05-07 11:54:17
500gigs!!!

Me too. Should be easy. I can't believe they're still charging approximately $100 for that 20gig HDD still.
by rollypoly - 2008-05-07 13:09:28
yeah it is funny

because you must not be looking... read my first comment about how outrageous the price on this thing is.
by F34RM3 - 2008-05-07 13:15:41
Don't care

In the end people will still buy it regardless of price, so as long as people get suckered in they'll just continue to have outrageous price tags on their hardware, but then again I have an ELITE so the price of the drive doesn't really matter to me either way since I already have one, just rambling on pay me no mind.
by SuperQuest - 2008-05-07 21:41:26
lol

so your calling your self a M$ fanboy i was talking about the PS3 bashers
by Manny151 - 2008-05-09 08:17:16
Rip off artists

I bought a launch 60GB PS3 and a 360 right around the same time and I gotta say that I prefer my PS3 a 100 times more. Mostly because M$ wants to charge for every little thing. Everything is proprietary and overpriced, and even the content that goes in your 360 is coming from M$. The only thing that you can put in your 360 that isn't downloaded from M$ is your music and you gotta have the CD cause you can't transfer MP3's to the damn thing. The PS3 on the other hand is the complete opposite. You can load up anything you want onto your PS3 including a secondary OS (operating system) I upgraded the HDD on my PS3 to a 160GB's for about $90, less than the price of a 20GB hard drive for the 360. I just don't get how people can defend it so much and talk down the PS3 when the PS3 gives you so much more for less. Oh well fools will be fools.

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