Xbox 360 manufacturing costs drop by 40% |
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That hot new MP3 Player you need cost a bit too much for you? Don't worry. Wait a year or something. Of course by, then there will be a new MP3 player out that makes yours look like a pet dog's chew toy. But you don't mind. At least it's economic.
A year ago it was generally believed that the components to make an Xbox 360 cost around $525. Some believed that Microsoft sold at a loss of US$ 124 per unit. It's a different story now though, as the component prices for the console have dropped. Analysts believe that Microsoft could be saving as much as 40% on manufacturing costs. This gives Microsoft a profit of around US$ 75 per system sold.
So what does this mean? Well for one thing, Nintendo isn't alone in the profit-per-unit sold pedestal anymore. *chuckles*
What else? Well some people think that Microsoft might want to keep the current price and just add in more stuff to their console. Some think that a price drop would be better. Imagine: a Core system that's cheaper than a Wii? Sounds nice right?
Of course Microsoft could just choose to get as much profit as they can and just focus on selling more consoles so that they can earn US$ 75 per box.
If you were a Microsoft exec, what would you do right now?
Via 2old2play
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Comments [refresh]
even though im a ps gamer (not certain to buy a ps3 mind you), if microsoft is making a $75 profit on each console, they should drop the price by at least 50, just to keep it competitive and to make it look like its coming down periodcally. especially in europe and australia where the ps3 is yet to launch for another 5 months - a price drop here could make a ps3 win impossible.
they have enough money already, price drop!
I would drop the core completly
make a silver and a gold pakage
silver 250$
20GB HDD
Wired Controller
Componet HD AV Cable
Ethernet Cord
XBL silver
A free Marketplace game dl
Composite AV Cable
Gold 300-350$
100GB HDD
Wireless Controller
XBL Headset
Componet HD AV Cable
XBL Gold 5 Months
and I would offer different colors or something along that lines like a free faceplate
they should drop both packages down to 200 and 300. think about it. they will lose 25 dollars(if they are infact making 75 right now) but they will have one package cheaper then the wii and 1 that is only 50 more. I always here people talkign at school that they would get the wii because it is the cheapest and that they would get a 360 if it ever droped in price.
I think MS should have gone with a limited price drop for the holiday season, like maybe lowering the cost of the consoles $50-100 just until mid January. That would ensure people would really consider the Xbox 360 for this holiday season and would install a huge user base during the PS3 launch. People who were considering the 360 but waiting for a price drop would pick it up, as would people who care more about price than games. Microsoft would have an almost guaranteed victory over Sony if it knocked them out of the box for the first 6 months. The best part of this plan is that MS now has enough boxes so if they did do a price drop, supply and demand could definitely be filled.
Price'll probably drop in jan/feb, after chrimbo when no-one will pay that much and 1-2 month before PS3 is released in Europe. Makes the most sense.....
none of my friends own a XBOX 360, maybe a price drop will do
Who says MS are doing a 75 dollar profit? Please folks be more sceptic about things you see and hear. Maybe the cost of the parts in the 360 is 75 dollars below what they are selling it for. But the parts are not the only thing that costs for Microsoft. There are people putting the parts together, costs of storage and not the least the shipping costs.
I do not think that MS are doing a profit on every 360 sold. But a pricecut would be, and will be very nice to see. Problary around januari-februari. But I would rather see a 360 with integrated wifi and hd-dvd with sustained price than pricedrop.
MS and Sony has changed roles with eachother since last generation. The xbox was 1 year late and that must have been a pain in the ass for MS, since everybody was comparing the PS2 with Xbox. And the killer was that when the Xbox launched, Sony did a pricecut on the PS2, making the Xbox an even less interesting product. This time MS has learned for their mistakes in many ways, and when they are making the pricecut for the 360, Sony will lose even more consumers.
the best move i believe would have been to introduce a black version of the 360 for the xmas season, then a price drop of about $50 for both core and premium right before european launch of ps3. they will sell 360's for xmas no matter what as shoppers are not as price sensitive so why not make the extra money for one last holiday season? 0wn3d.
drop the price micro$oft!!! ill buy 2!!
MS should drop the price for each version by $50 and offer 2 free games. They'll still have their $25 and games are pretty cheap to press.