NEWS - Thursday, February 15, 2001

$400 XBOX?

In a New York Times news post today, the XBOX was mentioned as going for a $400 price tag!!! The article mainly is focused on Flextronics, the company Microsoft has contracted to manufacture the XBOX. With two new plants in Guadalajara, Mexico, and the other in Tab, Hungary for a total of 16 assembly lines that collectively could churn out over 2 million XBOX units this year alone. You can check out the article here, and as always.. a snippet of love.

But Mr. Marks struck a deal last year with Microsoft that could soon rival the Ericsson alliance. Microsoft has chosen to challenge the Japanese electronics giants Sony and Nintendo and get into consumer electronics in a big way with its X-Box video game machine, scheduled to appear on store shelves by fall.

Although the powerful home computers will come with a Microsoft label, they will be built by Flextronics. Mr. Marks is now putting the finishing touches on two new factories, one in Guadalajara, Mexico, and the other in Tab, Hungary, where 16 assembly lines could churn out as many as two million of the $400 systems this year.

Update: We contacted our Microsoft representative about the $400 price tag and the validity of the New York Times post and the statement follows. "Microsoft still maintains that Xbox will be 'competitively priced' until they make their official announcement regarding retail pricing"


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