A Walk Through The Xbox 360 Evaluation Lab

An interesting article by Dean Takahashi, the guy who wrote the excellent Opening the XBox.

A+E Interactive: A Walk Through The Xbox 360 Evaluation Lab At Microsoft’s Mountain View, Calif. Campus:

Under this scenario, Microsoft pays an engineering fee that is lucrative for both ATI and IBM, but it doesn’t have to pay high margins to ATI or IBM for making the chips, and it can go directly to a chip contract manufacturer. The goal is to cut costs and to control its destiny. After all, Microsoft remembers it lost $125 on each of the first Xbox machines sold, and it got into a dispute with Nvidia over chip pricing to boot

(Via Next Generation.)