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Sony Fanboy
06-06-2005, 10:03 AM
It's a very tempting launch price, and also puts to end some of the speculation about the amount of subsidy.

Predictions by the analysts, reported last week in the Toronto Globe and Mail, suggest that Microsoft will pay $375 per unit to its manufacturing partners, with the final retail price of the console pegged at $299.

That's in line with comments from Microsoft boss J Allard, who told the media at E3 that the Xbox 360 would launch "in the neighbourhood" of the $300 price point at which the original Xbox launched in late 2001 in North America.

The $75 subsidy reportedly required to hit the launch price is quite high, but not unusual for a new console. Platform holders routinely subsidise their consoles at launch in order to build an installed base, and then make back the money from software sales and the rapidly falling price of hardware manufacture late in the lifespan of the console.

However, Microsoft found it more difficult to do this with the original Xbox, since it had to continue buying components from partners such as NVIDIA and Intel at high prices - unlike Sony, which has been able to hugely reduce the manufacturing cost of the PS2 as it builds most of the core components itself.

For Xbox 360, Microsoft has moved to a more Sony-like model, and expects to be able to realise similar economies as the scale of manufacturing ramps up and the component costs fall.

http://www.gamesindustry.biz/content_page.php?aid=9320

BashingU
06-06-2005, 10:57 AM
That isn't just a tempting launch price...That's freaking great! it's cost efficient, powerful, and next generation...I'm there...We don't even know what Sony or Nintendo is going to charge for their systems...I believe that Nintenod's system will definetly be economical...Sony? never know...the PSP is pretty pricey...And with all the stuff they plan on having in the system...I doubt they are going to come on the cheap side of things...

DBJAY
06-06-2005, 11:17 AM
The miracle is that it's they are only losing 75 per unit. Seems low to me.

299 is indeed a great price.

littlewig
06-06-2005, 01:03 PM
That's pretty impressive, I bet MS only needs a tie in ratio of 3 games to make up the loses from the hardware.

Dr. Bombay
06-06-2005, 01:13 PM
Yeah, now that it's confirmed, I'll probably pick one up as well with Full Auto, Kameo and Condemned.

Renegade X
06-06-2005, 01:42 PM
Ooooooh yeah... a 360 will be in my house on launch day.

Mistatee
06-06-2005, 03:58 PM
SCORE!
Sony will have to luanch at around 450-500 (estimate) to only loose 75 per system. I pray for a $50 price cut on X360 when PS3 is released (Bundle it with Halo3 for same price as X360 befroe) to destroy Sony!

Or atleast make them drop theirrice so i can buy one easily!

spider-prime
06-06-2005, 05:46 PM
That isn't just a tempting launch price...That's freaking great! it's cost efficient, powerful, and next generation...I'm there...We don't even know what Sony or Nintendo is going to charge for their systems...I believe that Nintenod's system will definetly be economical...Sony? never know...the PSP is pretty pricey...And with all the stuff they plan on having in the system...I doubt they are going to come on the cheap side of things...

Nintendo said they will never go over 25000 yen, which is like 250 american

so over here it would be 199.99 like the GC

justin_credible
06-06-2005, 05:48 PM
Cool, now I only have to wait for 3 price drops to buy one instead of 5!

TheHardware
06-07-2005, 02:37 AM
good so that means i will have a 360 and a rev....now if sony plays thier cards right i will buy thier console as well at launch

Renegade X
06-07-2005, 04:28 AM
You know, now that I really think about it... with the 360 coming out as early as it is... it could really undercut Nintendo when the Revolution comes out. I mean seriously... we've heard Halo 3 will be there for the PS3 launch from Bill Gates. And according to what we've heard.... the Revolution will be coming out a year later... Mircosoft could easily do a price drop and bundle in a couple of free games and really hit Nintendo in the gut when the Revolution comes out. I know the vitrual back catalogue is a great idea for Nintendo... but lets face facts... most people are going to buy next gen consoles solely for next gen games...


But what really worries me right now, with this 300 dollar price tag... will games really be 60 bucks now?

Reality
06-07-2005, 09:08 AM
M$ isn't competing anymore with Nintendo though. Or that's what M$ says. To them, Nintendo's focuses on a completely different market and are not even competitors like Sony is.

Nindalf
06-07-2005, 09:52 AM
Predictions by the analysts, reported last week in the Toronto Globe and Mail, suggest that Microsoft will pay $375 per unit to its manufacturing partners, with the final retail price of the console pegged at $299.

Not that I know anything about this stuff, but doesn't that $375 only go to the manufacturing partners? Isn't there also additional expenses, like actually building the fucking things, shipping, retailers taking their cut and so forth that make the subsidy at least higher than $75?

DBJAY
06-07-2005, 01:24 PM
That's true. What the article fails to mention is the wholesale cost to the retailers, who then mark up to a "retail price." Unfortunately, there's no way to know that information.

Decado
06-07-2005, 01:42 PM
Retailers will sell it at the price M$ says to. There will likely be no markup. Retailers don't make money from new systems.