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Microsoft asks component suppliers to lower prices

Written by James Delahunty (Google+) @ 26 Jan 2007 18:06 User comments (7)

Microsoft asks component suppliers to lower prices Microsoft Corp. is currently investigating ways in which the company can become more cost competitive with its Xbox 360 console. One of the ways in which the company hopes to achieve success is asking the component makers for a price reduction. Specifically, the Redmond-based firm has requested its component makers and EMS providers to lower their component quotes by an average of 5-15% on a quarterly basis.
Microsoft is also investigating the cost competitiveness of Taiwan-based manufacturers of optical disc drives for its HD DVD add-on. Sources say Lite-On IT is the most likely beneficiary. Lite-On IT declined to comment, citing client confidentiality.

Source:
DigiTimes

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7 user comments

126.1.2007 19:03

Could this have anything to do with the Wiibeing so chaep to produce I wonder?

226.1.2007 19:08

im thinkin the wii is so cheap to produce because its barely better then prev. gen. imo. but who knows...

327.1.2007 9:43

If Lite-On makes the HD DVD add-on for the 360 I will gladly buy one as soon as I can confirm that the drive is made by Lite-On, due to how well their computer drives are made. A Lite-On made drive would also be cheaper (and probably better, dunno who makes the current drive though) then the current one if its prices follow the same pattern as Lite-On's computer drives. According to what I read on the Wii, its CPU is an over-clocked GameCube CPU. Sure the "guts" of the machine are not much better then the GameCube but obviously they did something correct to cause it to sell so well.

427.1.2007 13:42

"obviously they did something correct to cause it to sell so well." With the right marketing you can sell anything to anybody!

527.1.2007 14:40

If all of these game manufactures of gaming machines were to make them so that you can log onto the internet and for a small fee download the latest version of their machines. This would bring the price down in one swipe, also I think that the manufacture would make a lot of extra cash.

628.1.2007 4:00
hughjars
Inactive

This kind of thing is very common practise in many industries, in fact it surprises me that this is considered news in the CE business. Car manufacturers regularly meet their component suppliers looking for cost reductions and better deals, for instance.

730.1.2007 7:08

Thats great news now if only the talks actually make something happen. This would not be good for sony..

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