Microsoft Could Allow 3rd Party Xbox 360 Consoles

Posted on Jun 26, 08 01:32 AM PDT

Word on the street has it that Microsoft could allow third parties to come up with their own Xbox 360 consoles. This is certainly news, but do you see any benefits for Microsoft in this exercise, assuming the rumor is true? Well, one thing's for sure - the larger the install base, chances are the more software you're going to sell. Also, console makers usually sell the hardware for a loss (in the early days), then at cost or for a slim margin (after a year or two). Licensing the Xbox 360 hardware might allow Microsoft to “outsource” these low-margins or losses to others, but without knowing their financials, it’s hard to build a scenario based on any meaningful data.

Still, this is a rumor that ought to be taken with more than the usual pinch of salt, and have you ever wondered what happens if someone made an Xbox 360 with a Blu-ray drive and a motion controller?

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