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More Xbox 360 Price Drop Rumors Taiwanese OEM component maker claims that has already negotiated production cost reductions with its suppliers	By Daniel Trusca, Editor, Game Reviews 31st of July 2006, 13:07 GMT Adjust text size:


Rumors of an autumn price reduction for the Xbox 360 have resurfaced. An unnamed Taiwanese OEM component maker claims that has already negotiated production cost reductions with its suppliers, seemingly in preparation for a price drop of up to 100$ by PS3's November release. The veracity of the rumors is yet to be confirmed, but I wouldn't put much faith in them. The reasons are two. Firstly, Microsoft is currently losing a significant amount of money with every Xbox 360 sold and, moreover, it already has a competitive advantage over the PlayStation 3. Secondly, there's been an official denial in June, when John Porcaro, group manager of PR and communications for Microsoft US stated: "The official word from folks in the know is that there are currently no plans for a price drop this fall." If there's indeed going to be a price cut, then it is most likely only due to increased production in preparation for the traditionally busy Christmas period. However, even if it were the case, Microsoft would have nothing to gain from making this information public, on the contrary. So, as it stands, the official denial would be the safest bet on the issue. If more news stick their nose out however we'll let you know.

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