
May be in Microsoft they are right, and this is a smart move from them. Two major factors influence this decision to hold releasing more consoles in the market. (1) Manufacturers do not earn much margin on consoles that they make, they earn on the games. If almost all the current consoles may be modified they will loose a lot on the pirated games, without earning much on increased sale on consoles. It makes sense holding manufacturing of consoles with the current firmware until they make an update that cannot be hacked yet. (2) Price drop from Sony on their consoles would have undoubtfully decreased the prices for X360, perhaps even below their cost, if there was enough supply in the market. Obviously it’s better for Microsoft to have the deficit on their X360 consoles. Until better times.
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