Breaking down the cost of Xbox 360’s 120 GB hard drive

Wondering why Microsoft‘s hard drive for the Xbox 360 is priced at US$ 179.99? You might find the answers you’re looking for in this article. A hardware analyst was able to break down the total cost of the HDD for the console. Details in the full article.

We got you guys helpful information that explains why the Xbox 360’s 120 GB hard drive costs about US$ 179.99. Krishna Chander, a hardware analyst from iSupli, revealed the various factors that contributed to the HDD’s price.

According to Chander, the hard disk must’ve have been from electronic manufacturers such as Toshiba or Seagate. These HDDs, when shipped, come fully loaded with starter software (Xbox live Arcade Trials) and “specific Gaming Instructions and some levels of the OS.”

Chander added that the pricing of the gadget also included color tuning and packaging. These disks that have pre-loaded software are sold to Value Added Resellers. These people purchase the items for about US$ 75. Then they add an additional US$ 5 for the application of casing and packaging. Finally, these drives end up in your local retailers and local games store.

Chander believes that the markup is about US$ 20, which can pump the price to about US$ 100. Microsoft sets a standard retail price, such as US$ 179.99. Now, retailers have the option to manipulate the price, either making it higher or lower. Amazon has set the price to US$ 149.99, while GameStop still has retained it to about US$ 179.99 on their website.

There you have it. That’s the reason why the hard disk for the console is priced as such. What do  you guys think? Overpriced? Cheap? Share your comments below.

Via MTV Blog