"My guess is for Natal, which is really important for them, they're going to price it at or below their cost," Pachter said. "Talking to my hardware specialist colleagues at Wedbush, it's about $50 in cost.”

“I’d be very surprised if it is more then $79 and I think it’s going to be $50. Microsoft’s not trying to make money on the device – they’re trying to get everybody to have the device so that they can sell us other things and eventually sell us a lot more Xbox 360s.

“My call is $50. I think that’s where it’s going to be launched.”