Latest Forum Posts

Latest News Posts
Coming Soon!
Go Back > Software > Gaming

Gaming Anything gaming-related can be discussed here, for PCs, handhelds and consoles.

Thread Tools
Old 05-07-2008, 03:32 AM   #1
Rob Williams
Rob Williams's Avatar
Join Date: Jan 2005
Location: Atlantic Canada
Posts: 13,366
Default Why Do Xbox 360 Hard Drives Cost So Much?

From our front-page news:
Ever wonder why the Xbox 360 replacement hard drives costs so much? There's no doubt you have if you've ever picked one up, since the 20GB model retails for around $90, while the 120GB is twice that. Well, would you believe that it's because they cost that much to make? Nah, didn't think so.

As it turns out, companies like to make money, and where they know the consumer is trapped, they jack the price high, since they know it will sell. Patrick Klepek from MTV contacted iSuppli, the company that tears into the pricing of gadgets, to see what the scoop was. As it turns out, the entire hard drive and package costs around $100 to Microsoft, but most of it is due to the retail packaging, drive enclosure and pre-bundled software (which, as far as I know, is free straight from Xbox Live).

Profit to Microsoft on their $180 drive is around $80... not bad for doing virtually nothing. The sad thing is that mobile drives, like the one used for the Xbox are cheap, so of the $100 that Microsoft pays for the drive and enclosure, less than half is likely for the drive itself. It also hurts to check out sites like NewEgg, who sell 320GB mobile drives for much less than what Microsoft charges for the Xbox 120GB drive.

iSuppli representative Krishna Chander expects the hard drive came from electronics manufacturers Toshiba or Seagate . When the hard drive ships to retail, it comes pre-loaded with starter software (i.e. Xbox Live Arcade trials) and "specific Gaming Instructions and some levels of the OS," said Chander.

Source: MTV Multiplayer
Intel Core i7-3960X, GIGABYTE G1.Assassin 2, Kingston 16GB DDR3-2133, NVIDIA GeForce GTX 770 2GB
Kingston HyperX 3K 240GB SSD (OS, Apps), WD VR 1TB (Games), Corsair 1000HX, Corsair H70 Cooler
Corsair 800D, Dell 2408WFP 24", ASUS Xonar Essence STX, Gentoo (KDE 4.11. 3.12 Kernel)

"Take care to get what you like, or you will be forced to like what you get!" - H.P. Baxxter
<Toad772> I don't always drink alcohol, but when I do, I take it too far.

Rob Williams is offline   Reply With Quote

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
WD Announces NAS-targeted 'Red' Hard Drives Rob Williams Storage Devices and Memory 8 07-12-2012 10:14 AM
Why Are Hard Drives Still So Expensive? Rob Williams Storage Devices and Memory 3 05-28-2012 05:34 PM
3TB Hard Drives to be Released in 2010? Rob Williams Storage Devices and Memory 3 05-11-2010 05:18 PM
15 Interesting and Unique USB Hard Drives Rob Williams Storage Devices and Memory 2 05-07-2010 01:50 PM
Hybrid hard drives soon to become commonplace? Rob Williams Storage Devices and Memory 4 09-04-2006 02:39 PM

All times are GMT -4. The time now is 09:43 PM.