Microsoft Trims Xbox Manufacturing Costs by almost 40%

[Paco]

The only question is, how big should the price drop be to get the best effect... price drops are like a game -- everyone's waiting for the other person to go first before they do... while higher prices might help sales, it'll hurt profits, and no one likes that. So they all wait until one drops their price, when all of the manufacturers drop them in short order.

Microsoft is on their own schedule. They're trying to stay ahead of the competition so I suspect a 360 pricedrop in the second half of 2007, or maybe by this time next year when they even further reduce their manufacturing costs. They'll drop the price when sales begin to stagnate at the current price.

So then... GC dropped in price about six months after it came out, when the PS2 and Xbox dropped their prices too. Will it be about that long again, or will it be even less time? If you drop your price too soon early adopters get annoyed, but if the X360 Core goes down to even or below the Wii's price, how long could they hold it where it is before they drop it, with their "affordable price and cheaper than the competition" focus?

Are you talking about the Wii?