"The plan was to make sure that the company didn't lose money on manufacturing the hardware again. The plan has failed.
They say you can't get something for nothing, but in the case of the Xbox 360 it seems that you're getting more for less. While Microsoft was clear that it wanted to make money off each Xbox 360 it sells (as opposed to losing money with the Xbox), a recent report suggests Microsoft is still footing part of the hardware bill for you.
Tech firm iSuppli took apart the Xbox 360 and worked out how much it would cost to make the console based on the cost of the components. It turns out that the $399 Americans are paying for the Premium pack, which includes a hard drive and a wireless controller, is quite the bargain, as iSuppli estimates that the console costs around $525 to make." [more]