Third-party 360s 'unlikely,' analyst says

Last week's rumor that Microsoft is planning to license the 360 hardware out for use in other electronics has yet to be officially confirmed or debunked, but a key industry analyst reckons such a plan just doesn't make sense. Speaking to GamesIndustry.biz, Wedbush Morgan's Michael Patcher says that it would ultimately prove "too expensive" to licensees to make for good business.

Patcher does feel that a move like this might benefit Microsoft "as a way to penetrate more difficult markets like Japan," but that he doesn't see it being beneficial in other territories. The licensing of 360 tech would cause electronics makers to incur additional cost per device, which "would place the hybrid device at a disadvantage" in terms of retail pricing, he explains.