iSuppli believes the drives cost $100 a pop for Microsoft.
Microsoft then sets a suggested price for retail. In this case, it’s $179.99, though retailers are free to move that price up and down.
iSuppli’s estimates, however, are just that: estimates. Could Microsoft be making this much profit? One thing is clear: unlike Sony, the company doesn’t have to worry about open competition among hard drive options for their console, the kind of competition that usually drives prices down.Comments (1)