Analysts: Third party 360 integration would be too expensive to manufacture

Refuting rumor claims that Microsoft will be opening up Xbox 360 hardware development to third party manufacturers, analyst Michael Pachter of Wedbush Morgan Securities says such a move would make the devices too expensive to manufacture.

"To add 360 functionality to another consumer electronics device, such as a Blu-ray player, the manufacturer would incur relatively significant additional cost" Pachter told GamesIndustry.biz, adding that the additional cost would put the "hybrid device at a disadvantage." Though, Pachter did say there would be an advantage to adding 360 hardware to devices in under-performing markets (cough, Japan, cough) allowing the 360 hardware to penetrate those markets more easily. But that'd only a benefit to Microsoft. Interesting points Pachter brings up, points that we'll keep in mind come E3.