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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.