Xbox 360 May Carry a Higher Price Tag

Goldman Sachs warned that the Xbox 360's price may be higher than initially expected due to the added cost of the hard drive and limited supply as Microsoft is aiming for a worldwide release. However, being first to market may carry an advantage.

"Microsoft observed that the upcoming Sony PS3 appears to be a powerful box similar to Xbox 360, but believes that [it] will have an important time-to-market advantage with a head start on next-generation content, which takes time to fully leverage the capabilities of the console," Goldman said. Goldman expects Microsoft to sell 3 million units of the new console in the December quarter.