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Analysis Next - Gen Consoles

Posted on Thursday, 3 November 2005 by AlterEgo, source: Next-Gen.biz
According to this cost analysis Microsoft should have a certain sales advantage over Sony by half of 2006...

"…Our analysis indicates that Microsoft has a significant advantage in terms of cost. Taking Sony's weakened financial condition and Microsoft's deep pockets into consideration, we conclude that Microsoft's Xbox 360 should emerge as the early winner in the next round of the game console wars."

"Competitive pricing [for Microsoft] could hurt margins for Microsoft in the near term, but we think that Microsoft has the potential to exit 2006 with an installed base of 10 million units, with all that implies for more profitable software sales for 2007."


Notice the table at the end of the article where you can see the costs per unit. Also notice the price the consoles should cost in 3 years!

We all know both Sony and Microsoft have never avoided a bit of a price war, so let's see what Sony can (and probably will) do to counter this... Or maybe Nintento will take us all by surprise!
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