Why 360 HDDs Are So Ridiculously Expensive

Why 360 HDDs Are So Ridiculously Expensive

Hands up who’s bought a new HDD for their 360. Anyone? Anyone? No, didn’t think so. $US 180 for a 120GB hard drive isn’t pricey, it’s taking the piss. So just why, exactly, do they cost so much money? MTV’s Patrick Klepek contacted tech analysts iSuppli (who you may know from their console breakdowns) to find out.

As you can probably surmise, they found much of the cost is taken up by the needless packaging and design required by Microsoft in order to ensure the drive works only in your 360 console. Some the biggest contributors to its inflated price (ie prices beyond the HDD itself) include:

– The HDD ships not only with pre-installed software (demos and/or XBLA games), but part of the console’s OS itself. This = increased costs.

– The HDD must be coloured and shaped to fit inside the specially-designed housing that ensures only your 360 can use the unit. That’s more extra expenditure. This is done by a “Value Added Reseller“, who also take care of the HDD’s retail packaging.

– Microsoft have at this point paid an estimated $US 100 (iSuppli can only go estimates, though as specialists in this stuff their numbers won’t be far off), and then split the remaining $US 80 profit with retailers and distributors (a 120GB HDD retails for $US 180).

Now you know why they’re overpriced, feel free to keep on avoiding them.

Hardware Analyst Breaks Down Cost Of Xbox 360’s 120GB Hard Drive [MTV]


  • /me sheepishly puts his hand up

    I filled 75% of my 20GB drive in 3 weeks when I bought 16 games and a heap of XBLA games.

    The 120GB drive has about 70GB free and I gave my 20GB drive to a workmate that had a core console pack.

    It does suck that they are not cheap, but I’m yet to change the HDD in my PS3.

  • wtf would anyone buy an overpriced 360 hard drive for use outside the console. A better way to go would be some sort of adapter or external enclosure you can plug a standard pc hdd into. Then microsoft can make their shareholders AND customers happy.

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