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$300 for Xbox 360 After a $75 subsidy	By 9th of June 2005, 00:02 GMT Adjust text size:

The Xbox 360 consoles that will be sold starting with November are estimated as having an approximate production cost of $375, says UBS, but the retail price will be around $299. Considering the estimations made by financial experts and by the Canadian press, especially by Toronto Globe and Mail, it seems J Allard's allusion that the Xbox 360 will cost $300 had some truth in it. Usually, when a product is launched, the producer sets a price that covers the design, development, manufacture and advertising expenses. But the $75 difference for each console amounts to a colossal figure, if we take into consideration the volume of units sold. Microsoft is probably relying on a large number of sold consoles which will result in a significant number of gamers who will obviously buy a lot of software. In this way, the company will reduce losses. The selling of spare parts will also contribute to the recovery of the large sums of money invested in Xbox 360's launching.

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