Legit Reviews

http://www.reghardware.co.uk/2006/05/17 ... price_war/

well lets see...who really thinks they can do this without losing a TON of cash? There is a $200 price difference. I cant see how they can sell a hd-dvd drive for UNDER $200 ad make money.

I am also curious to see how everyone reacts to this total price, since everyone freaked at the PS3's price tag ;)

Did I mention the PS3 has blue-ray in it, and the xbox360 doesnt? ;)

Mike

Maybe MS will just raise the price on Vista to make up the difference, since operating systems are so darn cheap anyway - they gotta pay the bills ya know

Most of the costs in the HD players will be for the DSP chips and licensing. The rest of the hardware is rather inexpensive.

Considering the 360 already has an extremely powerful CPU on it, all that's needed for HD playback is a stripped down 5.25" external drive to read the data off the discs.

Frankly though, I could care less about paying for $80 movies.
I'll take my ten $8 DVDs, thank you very much.

KnightRid wrote:http://www.reghardware.co.uk/2006/05/17 ... price_war/
well lets see...who really thinks they can do this without losing a TON of cash? There is a $200 price difference. I cant see how they can sell a hd-dvd drive for UNDER $200 ad make money.

Ummmmm..... They dont?
They have been deliberately losing money even with the Xbox. Didnt you know that?

Consoles have been selling at a loss for quite some time now. They've been making it up with games sales. In the case of Microsoft they knew it would have to be a standard bussiness model from now until doomsday.
PS2 lost money initially. But then the building of units got cheaper with new versions and they lost less. I think they even made a profit with version 4 because they were so cheap to construct by then.

I have no idea what the proft for a PS3 will be. Probably slim to none. Again that will be reflected in the game prices.

I'd have to agree with Kerii. I dont give a damn about higher rez movies. They look fine right now. And I already feel like I'm spending too much for entertainment.

The whole Xbox business ideology, is to loose money is the short run, by selling the hardware at a loss, but to make money in the long run, by selling games.
If you havnt noticed most of the sucessfull Xbox games are Microsoft or party owned by Microsoft, Halo series being a prime example.

Well I was talking SERIOUS money.

Blu-Ray players are what - $499. I dunno what standalone hd-dvd players will be, but usb drives are more than internal drives.

I just cant see how they are going to make it CHEAPER than the PS3 - they will be losing around $400-$500 with a xbox360 and hd-dvd drive. I just think that is TOO much money to be throwing in the wind.

THATS what I was talking about - I know all the consoles lose money up front, but this thing will be a MAJOR loss if they can make it cheaper than the PS3.

Mike

I don't understand why people haven't realized that computers > consoles in graphical power.

We have our PS3 graphics already, we just don't have the game manufacturers since its not as profitable as consoles are.