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Microsoft Cost-Reducing 360 Production

Microsoft is aiming to break even in the first year or two after it starts selling the Xbox 360, the successor to the first-generation Xbox, as it tries to knock rival Sony from its position of market leadership, reported CNN this Monday.

Analysts have estimated that Microsoft had operating losses of more than $4 billion from the first Xbox, which it introduced in November of 2001. “We will wind up cost-reducing the product every year,” Todd Holmdahl, corporate vice president of the Xbox group said.

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