Rumours everywhere as it seems Microsoft might be planning a price cut to really take the attention away from the PlayStation 3. Seems like Microsoft is trying to cut the price for their premium bundle to $299 USD.
Microsoft Taiwan denied the report, asserting that it is misinformation.
To make the price cut work, Microsoft has been said to have negotiated reduced production costs for the Xbox 360 with their Taiwan-based manufacturing partners.
The manufacturers estimate that the total production cost can be reduced by 15-20% due to diminishing costs for most components along with increasing production scales and decreasing defect rates, the sources pointed out. Microsoft plans would be to maximize the price competitiveness of its Xbox 360 by dropping prices so that they can sell the external HD-DVD as well as the Xbox 360 for under $399 USD.