As soon as the first peep of a price drop had left Sony's camp, all eyes have been on Microsoft as to their next move. Dean Takahashi of the San Jose Mercury News may just have the first response: lower production costs via smaller chips. According to Takahashi, Microsoft is currently cooking up microprocessors of the 65-nanometer variety, as opposed to their current 90-nanometer process.A process that would not only cut the cost of producing the Xbox 360, but also result in less heat being generated by the console itself. Something that, in light of their recent warranty debacle, Microsoft should be very interested in looking at. Auxiliary benefits aside, we're much more interested in hearing about how this could affect the retail price of the Xbox 360. In a brief comment to Next-Generation, Peter Moore gave a decided non-answer on the subject, stating "We have a bunch of different projects that cost reduce and improve quality as you find issues, as does our competition."
Wedbush Morgan analyst Michael Pachter is much more optimistic about a price drop, expecting $50-70 cuts for all Xbox 360 models as soon as this week. How are the odds looking in his favor? Should he be a betting man, Mr. Pachter can probably be found at his desk, scoping out prices for trips to Tahiti.
[Read] Microsoft's next move? Code-name Falcon (Mercury News)
[Read] Microsoft Readies Lower-Cost 360 (Next-Gen)
[Read] Pachter: 360 Price Cut Expected, DS/Wii Unaffected (Gamasutra)
