In a report at Techtudo and with a translated summary by Games Industry, Microsoft is to begin manufacturing 17,000 Xbox 360's per week in Brazil, after striking a new deal with Flextronics Inc., who manufactures the Xbox 360's in China. This new deal allows Xbox 360's to be produced for less and allows for around a 40 percent drop in price in Brazil starting on October 5. The Xbox 360 4GB model will drop from R$ 1299 to R$ 799 (US$ 444) in Brazil and the 250GB model will drop from R$ 1599 to R$ 1099. The 4GB Kinect bundle will be sold for R$ 1099 and the 250GB Kinect bundle will be sold for R$ 1399. The Kinect bundles weren't previously sold in Brazil.
These prices are still some of the highest around the world, however the cheapest model is a lot less than the PlayStation 3 and Wii, which are sold for R$ 1,399 and R$ 999 respectively. Microsoft is also lowering the manufacturer's suggested retail price (MSRP) of the Xbox LIVE Gold membership from R$ 129 per year to R$ 99 and the cost of its Microsoft Points system from R$ 59 for 1,500 points to R$ 44.