Robbie Bach Hints at Xbox 360 Price Cut


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http://news.teamxbox.com/xbox/12326/Robbie...-360-Price-Cut/

Robbie Bach Hints at Xbox 360 Price Cut

By: C?sar A. Berardini - "Cesar"

Nov. 27th, 2006 12:55 pm>

In an interview with San Jose Mercury News, Robbie Bach has hinted at forthcoming price cuts for the Xbox 360 video game system.

Because we are 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.

When the author of 2001's Opening the Xbox and 2006?s The Xbox 360 Uncloaked books asked Bach if work on the Xbox 360 successor has already began, the president of Microsoft?s Entertainment and Devices Division, once again said that cost reduction is the top priority for the Xbox Q: So are you thinking about Xbox 720?20?

A: You know how these things work. The engineering team is always thinking about the future. Right now we are thinking about how to cost reduce the Xbox 360. That seems to be the first order of business.ss.

To read the whole interview, click here.

Edited by PureLegend
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Right now we are thinking about how to cost reduce the Xbox 360.
All this means is that they want to reduce the cost of the Xbox so that they can make more money on it. I wouldn't take it to mean a price cut is coming (although, eventually it will be less, of course)
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All this means is that they want to reduce the cost of the Xbox so that they can make more money on it. I wouldn't take it to mean a price cut is coming (although, eventually it will be less, of course)

Didn't they just do that and are making a small profit on premium consoles now?

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I wonder if the lower manufacturing costs are being passed on to retailers. At launch, retailers made a very slim margin on the hardware, but now many stores seem more than willing to give consumers very nice bundles and/or discounts this holiday.

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there was a thread that they cut costs by 40% on here the other day.. they are making like $70 on core or was it premium? I'm not sure how accurate that news was but that's what it says.

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they just slashed the production cost by 40%.. and they still want more?

Isn't that the point of building something? Making the most profit possible?

I dunno....If I was building hardware, that would be what I would do. Maybe you don't want to make money. :laugh:

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I wonder if the lower manufacturing costs are being passed on to retailers. At launch, retailers made a very slim margin on the hardware, but now many stores seem more than willing to give consumers very nice bundles and/or discounts this holiday.

It is my understanding that retailers make no money on the consoles, only on accessories and peripherals. In light of the cuts though MS could honestly allow retailers to receive some funds now.

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Isn't that the point of building something? Making the most profit possible?

I dunno....If I was building hardware, that would be what I would do. Maybe you don't want to make money. :laugh:

:rofl:

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It is my understanding that retailers make no money on the consoles, only on accessories and peripherals. In light of the cuts though MS could honestly allow retailers to receive some funds now.

Knowing the cost prices for the premium and core pack from work, we basically make nothing on the consoles.

Markups from cost price are no more then 5%. Sometimes even less...

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