Originally Posted by NeilT

I'm sure thats true, BUT Microsoft are building tens of millions of these, therefore component costs drop substanstially and costs to build a single unit would be nowhere near £1k (or dollars). No idea what goes into one, but I'd be suprised if its a 10th of that.

Its true that the original Xbox turned into a loss for Microsoft, from a hardware point of view, but this was propped by the licensing and sw deals. I cant see MS making big losses on the hardware this time round.

Neil