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Kotaku
If you're still holding out on buying a 360 in anticipation of a price drop later this year, better be prepared to pony up the extra cash. Microsoft has vociferously denied any plans to drop the price to stick it to Sony and Webmorgan Securities' analyst Michael Pachter has a pretty convincing explanation on why that just won't happen:
Pachter noted that Microsoft brass has informed the Xbox division that it must turn a profit or at least break even in fiscal 2007, which ends June 30 next year.He explained, "That means that price cuts on the Xbox 360 will come only if the box costs less to produce, ship, and market than the wholesale price. Our best guess is that the box currently costs around $400 - 450 to produce, and it's likely that the company can get that down to below $400 later this year."
Makes sense to us: the Xbox is great but they've certainly gone a long while without making a profit. In fact, has the division ever turned a profit? Half a decade of loss is likely to make even Microsoft's sugar daddy execs a bit scowly.
