A blurb in a NY Times article has XBox gamers worried. The article is about Floxtronics, the company that will produce the XBox for Microsoft. The article mentions the possible production cost of the machine and it seems a little on the non-“competively priced” side.
Although the powerful home computers will come with a Microsoft label, they will be built by Flextronics. Mr. Marks is now putting the finishing touches on two new factories, one in Guadalajara, Mexico, and the other in Tab, Hungary, where 16 assembly lines could churn out as many as two million of the $400 systems this year.
It should be noted that most hardware manufacturers take a hit on the sale of console hardware and make it up in licensing for software.
Note: According to Daily Radar the price was given by the writer of the article and not a Flextronics rep.