120°

Microsoft Trims Xbox 360 Manufacturing Costs by 40pct

Microsoft Corp., the world's leading maker of software, is earning money selling the Xbox 360 hardware, according to updated teardown analysis from research firm iSuppli. The information means that the software giant has managed to lower the price of its latest game console by nearly 40% in one year.

According to iSuppli's most recent analysis, the premium version of the Xbox 360 game machine equipped with hard disk drive has a manufacturing and materials total of $323.30, based on an updated estimate using costs in the fourth quarter of 2006. This total is $75.70 less than the $399 suggested retail price of the Xbox 360. Even though it is obvious that Microsoft still has to subtract freight, toll, retail partner's profit and other possible charges, it is highly likely that Microsoft has either managed to reduce its loss to minimal, or is making a tiny profit selling the $399 flavour of the Xbox 360.

A year ago the total bill of materials (BOM) cost for the Xbox 360 Premium, including hard disk, the DVD drive, enclosures, the Radio Frequency (RF) receiver board, power supply, wireless controller, cables, literature, and packaging, reached $525, well above the retail price of $399, according to iSuppli. Considering the up to date BOM, Microsoft has managed to reduce the pricing of its console by over 38.5%.

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xbox-scene.com
calderra6362d ago

Looks like Nintendo isn't the only company after our pockets, after all. Heh.
"We don't have ulterior motives. (We're not pushing a format, we're not pushing a premium online service. We just want your money however you'll give it to us, plain and simple.)"

Funky Town_TX6362d ago

There is more to selling a console that just hardware cost. This is the advantage to being out for 1 year. Sony had the same advantage with the PS2. Now with the ps3 BEING $600 M$ does not have to drop the price. You can thank Sony for raising the price of consoles.

Oncnawan6362d ago

If the PS3 had launched with a DVD drive at the same price as the 360, Microsoft would be lowering the cost of the 360 right now to remain competitive. However, as Peter Moore said, when Sony announced the PS3's price, the 360 got an automatic price cut.

Thank Sony for higher console prices.

MicroGamer6361d ago

With PS3 costing Sony $840 each to make, an announcement that MS has lowered production costs by 40% must really hurt. MS has the ability now to destroy Sony's market share by dropping retail prices even further.

90°

El Shaddai: Ascension of the Metatron - Coming Back for a New Generation

Originally launched in 2011, El Shaddai: Ascension of the Metatron is coming to Nintendo Switch, so It's time to look back at the original.

jznrpg13h ago

Still have my ps3 copies. Bought it at launch and another one when I found it cheap and in perfect condition about 10 years ago. I wouldn’t buy it on Switch but if they made a PS5 version I would. I still have one of my PS3 Fats hooked up so good to go either way.

darthv7213h ago

Id play it again on the switch. I wished my 360 version was bc but this is still a good way to play.

150°

Fallout 3's Reveal Led To Death Threats And Bethesda's First Security Guard

The artist behind Fallout 4’s Deathclaw reveals just how bad things got back when Bethesda took over the series

anast14h ago

People are stupid I get it. No one should feel unsafe,

But I think they need to talk about why they cut so many corners during the development process and why none of their games ever look current. And why they think all of this is okay while they charge full price.

LucasRuinedChildhood14h ago

As much as Bethesda deserve criticism, that's not really relevant to the reveal of Fallout 3 in 2007.

VenomUK11h ago

The default angle Kotaku always go for is to highlight the worst in gaming.

I would’ve focused on the creative.

gold_drake10h ago

there is no "but". the hell lol
you dont send death threats, period.

60°

Chatting Shadows of the Damned: Hella Remastered with Suda51

CGM Writes: While we were over at PAX East, we were able to sit down with Goichi Suda (Suda51) and talk about the upcoming remaster of Shadows of the Damned

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cgmagonline.com