Some interesting news coming in from Ferrago, where they examine Microsoft's approach to the Xbox 360. The article stems from Investment bank analysts at UBS, who predict the Xbox development cost Redmond $375 to make but it will be subsidized to the tune of $75 a unit upon launch. This will bring the price down to the expected $300 mark.The idea behind the subsidized Xbox is that once MS has accumulated a strong user-base, their investment can be returned via games sales.
The cost of building consoles also drops later in a system's life, and it is at this point too that platform holders begin turning a profit. This method was utilised by Sony in the current-generation, but it is believed Redmond failed to break-even after committing too much ongoing cash to manufacturing partners NVIDIA and Intel.
Read on
Fonix To Provide XBox 360 Voice Recognition
Xbox father and son reunite for the Family Photo
Next-gen consoles to assassinate pc gaming forever
Discussion >>
Add Igniq.com to your MySpace Friends
