NEWS - Wednesday, January 28, 2004


Cheap Parts in Xbox 2?

Microsoft has revealed it will attempt to save money on the next version of Xbox; the company will attempt to put together its next console using less expensive internal parts. "With the current cost of goods, there’s no way to make money with this generation of the console," chief financial officer John Connors said yesterday at a Microsoft presentation in Boston. The division that makes the console suffered a loss of $874 million in the year that ended June 30, 2002, with a $924 million loss following the next year. The announcement has lent credence to the theory that the next Xbox may be launched without a hard drive, one of the more expensive components of the current console. There is some speculation that two versions of the next generation Xbox will be launched, one featuring a hard drive and a cheaper version without, with Microsoft further bundling a hard drive with the next-gen version of Xbox Live.
Source: http://www.computerandvideogames.com/

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