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MS Squeezing 360 Component Suppliers

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HardOCP News

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According to this news item, Microsoft is trying everything possible to get the best deals it can on Xbox 360 components. Hmmm, maybe there is something to all the price reduction rumors out there.

Microsoft is adopting various strategies to be more cost competitive with its Xbox 360 game consoles, with moves including asking for a price reduction from Taiwan-based component makers and working with Lite-On IT for its add-on HD-DVD drive, according to industry sources.
Click to expand...
 
I would expect MS to go this anyway, but it could be an indicator of things to come.
 
I don't really see the big deal. Every company always goes back later to renegotiate with thier suppliers to push the costs down more... it's a normal business practice to do some price shopping... increases your profits.
 
LOL, this is like a study saying that online shoppers try to get the lowest prices..

Who would have thought that Microsoft would try to get good deals from their suppliers?

That being said, I am sure MS will drop the 360 price soon. I imagine that they are waiting until the Wii and PS3 have steady availability. Then they will drop the 360 price to keep it competitive.
 
So is this squeeze, a hug, or more of a reach around ?
 
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