ok why do i simply not belive this article. the prices they give for the hardware is what someone like myself would pay if i were to go out and buy each piece individually, such as that memory for example. microsoft is obviously getiing a huge discount because of the millions of pieces of hardware they are purchasing, not to mention the deal im sure theyve cut with some of the manufacturers as to getting some cut of the sales. i simply do not believe miscrosft is paying the full price for each individual piece of hardware. though the article says they are just doing it as normal marjeting strategy or whatever, i dont think so, why would you purpossily lose hundreds of millions of dollars just to wait for production costs to go down so you could lower the price. by then you would be competing with the likes of sony and nintendo and would not have the dominance as when you had the head start and were the only new console out there. by then sales wouldnt be as great and would they really catch up to the loss they already took? again as stated that would be the price sure, if average joe me were to go out and buy each piece individually. thats my opinion.