Analysts: Third party 360 integration would be too expensive to manufacture

by Dustin Burg { Jul 1st 2008 at 1:45PM }

Refuting rumor claims that Microsoft will be opening up Xbox 360 hardware development to third party manufacturers, analyst Michael Pachter of Wedbush Morgan Securities says such a move would make the devices too expensive to manufacture.

"To add 360 functionality to another consumer electronics device, such as a Blu-ray player, the manufacturer would incur relatively significant additional cost" Pachter told GamesIndustry.biz, adding that the additional cost would put the "hybrid device at a disadvantage." Though, Pachter did say there would be an advantage to adding 360 hardware to devices in under-performing markets (cough, Japan, cough) allowing the 360 hardware to penetrate those markets more easily. But that'd only a benefit to Microsoft. Interesting points Pachter brings up, points that we'll keep in mind come E3.

Tags: hardware, microsoft, xbox-360

Reader Comments (Page 1 of 1)

Gemini Ace @ Jul 1st 2008 2:10PM

I think it's a good idea. How hard would it be to incorporate a 360 into a hi-def tv and sell it for around the same price as buying both separately?

Wii60 @ Jul 1st 2008 2:58PM

I'd hate to have my TV RROD...

PeacefulOutrage @ Jul 1st 2008 3:08PM

Yeah, I don't think it would be that expensive, and you wouldn't need some of the extras like external a/v hook-ups (that aren't already present on the set). I remember the HDTV DVD combos and how much those used to cost.

Also with the larger surface area of the TV and the smaller dies design of the chip, the system should be a lot cooler IMO.

TG PitchBlack24 @ Jul 1st 2008 5:49PM

I think Pachter is just plain stupid. The whole idea of third party 360 integration is really good and would probually create alot of interesting hybrid 360 machines...

Mike @ Jul 1st 2008 2:41PM

You thought it was expensive when your 360 RROD, and it was trash material, now you can throw your plasma in the trash too...

Integrated products are bad news, it's even worse when you add something as unreliable as a 360 to the mix.

Anyone remember the TV/VCR combos? Horrible...

guidedbyvoip @ Jul 1st 2008 2:49PM

I would think consumers would be more likely to buy into it if it weren't welded inside another device. Hybrid TV/BluRay/360 sounds great until you decide your HDTV isnt up to snuff. Or if youre one of *those people* still worried the RRoD kinks haven't been ironed out.

I'm calling Michael out on this one. 3rd party boxes make a lot of sense, especially to companies wanting a proven media server interface.