According to analyst iSuppli’s most recent research, they have determined that manufacturing costs have dropped enough that Microsoft is now making a profit on selling Xbox 360s. At launch last year, it was estimated that it cost $525 to make a Xbox 360, however, iSuppli’s new research shows that the cost is now down to around $325, an almost 40% drop!

Microsoft could use this as an advantage by cutting the retail price on the console, but that’s highly unlikely, sine they’ve always officially denied any price cuts.

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