Hyperdrive: "One game system to rule them all" - Yeah sure kid

This Xbox360 hype is laughable.

Forbes reported that XBOX cost MS 4 billion since it launched. That loss includes offsets by XBOX revenue. XBOX is tied for 2nd with the Nintendo Gamecube.

Now MS is going to market first and claiming a technical edge over the 2006 Sony PS3 so that technical claim means they'll need to push Moore's Law and thus spend more money on cutting edge hardware to ship a system today that will be competitive against the PS3 and Nintendo Revolution when they ship in 2006.

MS is going to market first and will lose hundreds on each system sold.

They will do redesigns. It is reasaonable to refresh the system design in two years - for XMAS 2007 - to boost sales and cut manufacturing costs. And it is reasonable to redesign the system chips within a year to cut costs/heat. It is laughable to think they'll redesign the XBOX to cover the hardware costs within 1 or 2 years on a 6 year product life cycle.

And MS has to recover the hardware design costs of the Xbox360 - they own (paid) for the chips designs.

CNN.com - One game system to rule them all - Sep 19, 2005: "As of June, Microsoft had sold nearly 22 million of its original Xbox consoles -- fewer than one-fourth the number of PlayStation 2 units sold by Sony. Nintendo Co. Ltd.'s GameCube is the third biggest seller in the console market.

Now Microsoft wants to get many more of its next-generation consoles to market faster, buoyed by a wider selection of titles and an improved ability to keep costs in check.

'We will wind up cost-reducing the product every year,' Todd Holmdahl, corporate vice president of the Xbox product group, said in a recent interview.

Microsoft is working to break-even on the Xbox 360 hardware in the the first year or two -- roughly the first third in its expected six to seven-year console cycle."