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News: Microsoft Responds to XBOX 360 Price Cut Rumors

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Posted: October 3, 2006 08:32AM
Author: sdy284

DailyTech - "As long as it's cheaper than PS3, it'll be status quo. Even before the XBOX 360 launched last year, Microsoft openly stated that it planned to reduce the price of its newest console on a yearly basis. Now, a year later, some gamers are waiting for that forecasted price-cut, despite constant denials. Rumors of a price drop recently surfaced on the ‘Net, perhaps fueled by consumer expectations of a reaction to competition, and by a DigiTimes story claiming that a $100 drop would be possible. DigiTimes cites sources stating that Microsoft “has negotiated reduced production costs for the XBOX 360 with Taiwan-based manufacturing partners” and “total production cost can be reduced by 15-20% due to diminishing costs for most components along with increasing production scales and decreasing defect rates."

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