The New XBOX 360 "Falcon"

Report says Microsoft to reduce 360 production costs with new processors this year

Microsoft is to roll out a revised version of the Xbox 360 soon as part of a cost-cutting initiative codenamed 'Falcon', it's been reported.

According to Mercury News,'Falcon' is the code name given to the new innards of a revised 360, which is said to feature new central and graphics processors that are manufactured in a 65-nanometer production process (as opposed to the older 90-nanometer processors in current models).

For the non-techie readers out there, this basically means that the chips are smaller which brings with it a range of benefits: cheaper production cost; cooler running temperature; increased reliability and increased space within the console.

Decreased productions cost normally lead to a retail price drop.

It is no surprise that the console's hardware is to be revised - Sony has reduced the production cost of PS2 to under a quarter the original cost, and 360 itself has had new quieter DVD drives slapped in them.

But these 'Falcon' machines are expected to resolve the reliability issues that forced Microsoft to extend 360 warranties to three years, promising to "retroactively" reimburse customers who have previously paid for repairs related to the three red lights of death.

"We have a bunch of different projects that cost reduce and improve quality as you find issues, as does our competition," said Microsoft boss Peter Moore. "Once you get millions in the field, you learn about the box under all kinds of different circumstances, you can adjust and tweak what you do accordingly."

If true, the introduction of these 'new' consoles could spell the end of the dreaded Three Red Lights of Death syndrome that's wiped out many Xbox 360s already.

I want to know if it will be anounced or they will just start making them (Like, will the box be labeled "The xbxo360 Falcon") or somthing?

Also, do u think it will be cheaper when it comes out, or do they mean its price will drop AFTER it comes out?

Do you think the other system's prices will drop with this coming out?

So when this is released can i turn in my current 360 and get this one cheaper? Granholm

Think about that statement for more than a second and you will have your obvious answer.

yea, i know about the sig. i didn't make it. i got it from a site and realized it too late. :)

the thing is, if it is cheaper, there will be a HUGE demand and it will be hard to fidn b/c everyone will trade there prmium/elite in.

Even if this new "falcon" machine is released, it doesn't necessarily mean a price drop. If Microsoft is still selling huge amounts of 360s then what is their incentive? If it's cheaper to make and they keep the price the same then they'll make more money, and since they are dumping a billion dollars into this extended warranty dealy then who knows.Large_Soda

True, i was thinking the same thing actually. That's a lot of money they're going to want to make back. However, asfazio93 speculated, the price drop could increase sales by bringing in more customers who weren't willing to buy one at the current price point. Not to mention with all these technical issues starting to make their way more and more into mainstream media, some consumers out there may feel wary about buying a unit right now. So when a new model hits the shelves, sales could make a nice jump once people know that a more reliable 360 is on the market. At that time it's a matter of which gamble do they want to take? Do they lower the price, and make less of a profit per unit in the hopes of selling more? Or do they keep it where it is, maybe not sell more, but pull more of a profit per unit? It may be interesting to see where they go.

ok now im getting pissed returned my prem for the elite and payed 200$ more now theres a new one coming out its better and cheeper im getting sick and tired of god damn microsoft Crazy87

This xbox 360 isn't better, its just more reliable. Keep your Elite, it the best version of the 360 and its black!

the falcon is relivant to price cut. ms is already making almost $100 profit on every console sold. sony just announced a price cut which ms will match. i think ms wanted to wait till november but sony forced their hand. where is the incentive? if the 360 with it's library were as cheap as (or $50 cheaper than)the wii which would you buy? yeah, i'ld buy the 360 too. most people will. the 360 will be selling like hotackes. and remember consoles make the vast majority of their money from game licenses. more consoles out there means you make more money by selling alot more games. thats why consoles were sold at a loss in the past, and games were only $50. the price of games jumped 20% this gen. the falcon will only increase ms's profits, and maybe bring down your utility bill.rdo

Lol love that last bit! I don't think anyone will notice the ever so slight difference though.Wonder what I'll do with the 10 cents I save each month...

Maybe it will have a disc slot like the PS3, Wii, CD players. That's the one thing I dislike about it.musicXpirate

Nah, if anything I wish those systems opted out of the slot feed for a tray loader. It's a little bit safer for the disc because slot feeds have a tendency to get some tiny little spec of something thatcan put anice deep scratchacross the disc (every disc) as they're dragged across it during insertion. Trays, on the other hand, are easier to keep clean and tend to not have this problem.

Even if this new "falcon" machine is released, it doesn't necessarily mean a price drop. If Microsoft is still selling huge amounts of 360s then what is their incentive? If it's cheaper to make and they keep the price the same then they'll make more money, and since they are dumping a billion dollars into this extended warranty dealy then who knows.Large_Soda

Sony is announcing an $100 price drop on thier ps3 making the price $499 which will make it more competative w/ the 360 so why not stick it to Sony and say oh yea? Boom. Take that and bring their prices down too. Cheaper to make doesnt necessarily mean u are gonna see a bigger profit margin if u keep the price the same. Plus consoles usually do drop their prices after 2 or more years. This has been rumored for a while now. Elites are to said to be $399, but we'll see what happens in E3 tomorrow.

Interesting now I don't know what to buy in October, should I get the Falcon or the Elite. Both of them are going to have the new chip. WCWUSCHAMPION50

[QUOTE="WCWUSCHAMPION50"]Interesting now I don't know what to buy in October, should I get the Falcon or the Elite. Both of them are going to have the new chip. fore_runner

Yes I kinda figured that.

My question is that when we all head to the store how will we know that we're buying the one with new internal components? Unless they put something on the box to make it known.

Because they could just stack them up there with all the regular 360's, and hope people buy those too.

After they release the 360's with the new chips, it is illegal for stores to sell the ones with the old chips unless they are used.infamous16

Infamous thank you for clearing that up for me brother!!!! :)

Plus aren't they going to be ordered by Microsoft to ship all the old consoles from the shelves back to them. So that they can put in the new components on those?

The Elites will have these new chips too, right ?nivet14

i think all the 360 models will have it

[QUOTE="rdo"]the falcon is relivant to price cut. ms is already making almost $100 profit on every console sold. sony just announced a price cut which ms will match. i think ms wanted to wait till november but sony forced their hand. where is the incentive? if the 360 with it's library were as cheap as (or $50 cheaper than)the wii which would you buy? yeah, i'ld buy the 360 too. most people will. the 360 will be selling like hotackes. and remember consoles make the vast majority of their money from game licenses. more consoles out there means you make more money by selling alot more games. thats why consoles were sold at a loss in the past, and games were only $50. the price of games jumped 20% this gen. the falcon will only increase ms's profits, and maybe bring down your utility bill.arfy2

Lol love that last bit! I don't think anyone will notice the ever so slight difference though.Wonder what I'll do with the 10 cents I save each month...

save up for 10 months and go buy a chocolate bar!

[QUOTE="Crazy87"]ok now im getting pissed returned my prem for the elite and payed 200$ more now theres a new one coming out its better and cheeper im getting sick and tired of god damn microsoft arfy2

This xbox 360 isn't better, its just more reliable. Keep your Elite, it the best version of the 360 and its black!

I fully agree with you. I can't wait to get my Elite.

ok now im getting pissed returned my prem for the elite and payed 200$ more now theres a new one coming out its better and cheeper im getting sick and tired of god damn microsoft Crazy87

U don't have to get it...

unless your one of those people who always have to get everything new...

Can't wait!!! This will be my first Xbox.drwdan19

Ya it will be my next step into next gen console play as well.

[QUOTE="Large_Soda"]Even if this new "falcon" machine is released, it doesn't necessarily mean a price drop. If Microsoft is still selling huge amounts of 360s then what is their incentive? If it's cheaper to make and they keep the price the same then they'll make more money, and since they are dumping a billion dollars into this extended warranty dealy then who knows.elemental_drago

True, i was thinking the same thing actually. That's a lot of money they're going to want to make back. However, asfazio93 speculated, the price drop could increase sales by bringing in more customers who weren't willing to buy one at the current price point. Not to mention with all these technical issues starting to make their way more and more into mainstream media, some consumers out there may feel wary about buying a unit right now. So when a new model hits the shelves, sales could make a nice jump once people know that a more reliable 360 is on the market. At that time it's a matter of which gamble do they want to take? Do they lower the price, and make less of a profit per unit in the hopes of selling more? Or do they keep it where it is, maybe not sell more, but pull more of a profit per unit? It may be interesting to see where they go.

All the game companies want to make most of their money off the accessories and software not the system itself. Knowing microsoft though, they wont lower the price until the selling rate gets really low.

Undoubtedly this will be the 360s price drop and you spelled Private Ryan wrong in your signature...I have the 3 year Wal-Mart warranty (it was really cheap) so I'll exchange my current box for the new ones when they come outshadow8585

[QUOTE="shadow8585"]Undoubtedly this will be the 360s price drop and you spelled Private Ryan wrong in your signature...I have the 3 year Wal-Mart warranty (it was really cheap) so I'll exchange my current box for the new ones when they come outXxAK47xX

I don't know but they will probably recall the current Elites that are in stores. So that they can put the new hardware into those, then send them back to bestbuy for example. Because like a guy on here told me, it's illegal for stores to keep the old machines in stock if the upgraded systems are out there. You can't sell the new chipped elites and chipless ones. Another word would be them ripping us off if they did that. So I do love the Law preventing stores from doing that!

this is good i didn't really want a xbox 360 to die thats why i have waited so long & with a lower price i can get lots of games