Having lost almost $4 billion since launching the Xbox, Microsoft aims to break even within two years with the Xbox 360.
And in another aggressive move, the company is stating it is committed to reducing the price of its new machine on a yearly basis.
Speaking to Reuters, Todd Holmdahl, corporate vice president of the Xbox product group stated: “We will wind up cost-reducing the product every year,” and given the use of licensing technology rather than buying off the shelf components, Microsoft should easily be in a position to do so. With an estimated $100 lower manufacturing cost than the Playstation 3, it looks like Microsoft might have a better chance of competing things time around.