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 Jan 10, 2005 - 12:00 AM - by Michael
* Xbox2 to cost $400?

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Xbox/Xbox Games
CNN Money's "Game Over" column from Friday has word that Microsoft may sell the Xbox2/Xbox Next/Xenon/Whatchamacallit for as much as $400.

Will hardware prices follow that trend? At least one analyst believes so. Tony Gikas of Piper Jaffray said in a recent note he expects the Xbox 2 to break beyond the traditional launch price for new consoles, which has stood at $299.

"We think Microsoft will price its next generation system at or above $300 for the base model," wrote Gikas. "We also think there will be a model that includes accessories or network devices that could price as high as $350-$400/system."

So what about the hard drive? That's a little trickier. Many, at this point, believe Microsoft will opt for flash memory rather than the traditional hard drive found in the current Xbox, but things hardly seem nailed down. It's just as likely that the company will abandon any significant installed memory and will rely on the user's home network to store games.
My wallet is cringing...

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