QUOTE(frieko @ Sep 18 2008, 10:31 AM)

Guys, according to your logic it should cost $10 to make a brand new '69 Mustang. Cuz it's so old and obsolete and you have 100 of them sitting around in your garage.
There's a fundamental lower bound on the cost of making a hard drive of ANY capacity.
Put in an order for 2.5 million 69 mustangs. Someone will fab them for you and at a great rate too.
A better analogy is clock radios. Super old tech, every DOES have a bunch of them lying around, and they are super cheap still. Old and dated and newer tech to replace them widely available, but still dirt cheap.
Old tech doesn't become expensive because it's old, it becomes expensive because demand drops, with that cost to create goes up (due to lost discount from volume) and cost to supply goes up because the suppliers are likely to have to house the item longer since less people are buying it.
In the case of the hard 10 GB hard drives, if MS was ordering a boat load of them the price would not go up nearly as much.
But that's not even the point... Remember the original Xbox HD? They were 8GB.
Near the end they turned into 10GB drives with 2 GB disabled.
What does that tell you? That they were not limited to 8GB drives... they could easily have slapped whatever the low price drive of the day was in there and been good to go. This is proven by people who stuck larger drives in their boxes and still used them as normal with the mod chip turned off.
So even if 10GB were $60 there was SOME drive that was dirt cheap at the time. By the end they could have been slapping in 80GB drives for $20 each and disabling 72GB of it.
No... the $70 drive price doesn't hold water.