Michael Patcher, analyst at Wedbush Morgan Securities, said that “neither your nor the consumer will be shocked” by the price for the Xbox 360, which is in line with two other stories circulating: one in which J Allard stated the price would be around $300, and the other in which analysts at investment bank UBS told Toronto’s Globe and Mail that the Xbox 360 would launch for $299 later this year.
In other news, Microsoft is expected to take a $75 loss per unit in order to get the price below $300. So, it is rumored (though unconfirmed) that Microsoft will pay $375 per console. Microsoft, however, has taken a much different approach to building a console this time around. By following in Sony’s footsteps, Microsoft has more control over the individual components, so, over time, the process becomes more streamlined, and manufacturing costs are cut; however, the company could expect to lose as much as $92 million on console hardware production in 2005, and as much as $245 million in 2006.
In some disappointing (but not unexpected) news, British Xbox boss Neil Thompson, speaking to British industry magazine MCV, said that the demand of the Xbox 360 could outweigh the supply. “I think demand is going to be phenomenal so we see that as a really difficult thing,” he said, “Will we execute will so retail will have a good volume? Yes. But I don’t think we’re going to meet demand as people are going to come into this platform in a big way.”
Of course, if Microsoft wanted to meet the demand, they could, but it has been known for a long time in the gaming industry that under-supplying your product can generate a ton of hype and free press.
Provided by Geekstreak