Taiwan-based OEM component builder claims Microsoft is prepping for a price cut by reducing production costs.
The rumor is that Microsoft will soon cut their Xbox 360 Premium console down to $299.00 USD so that consumers can purchase the Xbox 360 and HD-DVD for a $399.00 USD. This reduction would make the Xbox 360 "home entertainment" solution a much more cost effective solution to Sony's BluRay console.
The Taiwan OEM builder has stated that Microsoft has negotiated reduced costs to its component manufacturing partners due to diminishing costs of the hardware pieces. This, combined with the lowering defect rate and increased overall production of the console means a 15-20% reduction in production costs.
Of course Microsoft could still reducing these production costs so that they can make higher margins on the consoles themselves but it is more sensible to hit Sony where it counts: the wallet.
Microsoft Taiwan flat out denies the reports claiming it as false infromation. History has shown that most companies would spring cost cuts at the last moment to avoid consumers holding out to purchase equipment until the cost reduction is in effect.
Validation of this "claim" will be known in time and if it turns out to be true then Sony is going to have a challenge on their hands. Nintendo may want to watch out as well as the 360 climbs closer to the cost of the "low end" console.
The rumor is that Microsoft will soon cut their Xbox 360 Premium console down to $299.00 USD so that consumers can purchase the Xbox 360 and HD-DVD for a $399.00 USD. This reduction would make the Xbox 360 "home entertainment" solution a much more cost effective solution to Sony's BluRay console.
The Taiwan OEM builder has stated that Microsoft has negotiated reduced costs to its component manufacturing partners due to diminishing costs of the hardware pieces. This, combined with the lowering defect rate and increased overall production of the console means a 15-20% reduction in production costs.
Of course Microsoft could still reducing these production costs so that they can make higher margins on the consoles themselves but it is more sensible to hit Sony where it counts: the wallet.
Microsoft Taiwan flat out denies the reports claiming it as false infromation. History has shown that most companies would spring cost cuts at the last moment to avoid consumers holding out to purchase equipment until the cost reduction is in effect.
Validation of this "claim" will be known in time and if it turns out to be true then Sony is going to have a challenge on their hands. Nintendo may want to watch out as well as the 360 climbs closer to the cost of the "low end" console.
