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Xbox One Teardown Reveals $90 More Build Cost than Sony's PS4

The Xbox One teardown reveals that its build cost is $90 more than Sony's PS4. It may be quite an “in” thing among gamers but it does not exactly rake in profits for Microsoft. After the buying and selling is over, Microsoft just gets a $28 surplus on each unit.

Nov 27 2013, 3:56am CST | by

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Xbox One Does Not Rake in Profits for Microsoft
Image Credit: Xbox One
 
 

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Xbox One Teardown Reveals $90 More Build Cost than Sony's PS4

The Xbox One was deconstructed recently to reveal what its components cost on an individual level. This was also done in order to determine the amount of profit that Microsoft made on each gaming device. The manufacturing and assembly of parts cost a total of $471, according to research firm IHS. That happens to be $90 more than what it takes to make a Sony PlayStation 4

Meanwhile, the Xbox One sells for $499 which essentially means that it saves up to $28 per unit for Microsoft. It’s not much when you come to think of it. Of the manufacturing costs, $75 is comes down to the Kinect device. However, the component that costs the greatest amount is the AMD microchip which takes a whopping $110 to make. 

Then there is the memory bank. While the PS4 employs GDDR5 memory chips, the Xbox One utilizes DDR3 memory chips. They cost Microsoft $60. On the other hand, the physical factors that go into the formation of the console itself cost $332. The controller was merely for $15. It stored Wi-Fi and Bluetooth technology. As for the outer power supply, it clocked in at $25. 

Finally, the headset had a nominal price of $10. While, Microsoft would be earning quite a lot from its games which run on the device in the future, the console components would have their rates slashed too. But, Microsoft would be decreasing the price of the console too in order to sell more units, so that would even the score.

Source: AllThingsD  

 

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Update: 6

Xbox One pre-order for Singapore starts Friday

Source: Channel News Asia

SINGAPORE: Ahead of the Xbox One launch in Singapore on Sep 23, gamers can now pre-order one of two official Xbox One bundles from Friday (Aug 15), Microsoft has announced.The Xbox One Launch Console Bundle, priced at S$639, will include the Xbox One console — which features a 500GB hard drive, Blu-ray player and built-in Wi-Fi — one Xbox One Wireless Controller, a chat headset, a HDMI cable, a free 14-day trial of Xbox Live Gold for new members and a digital copy of EA S ...
Source: Channel News Asia   Full article at: Channel News Asia 5 days ago, 10:51pm CDT
 


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Update: 5

Xbox One pre-order starts Friday

Source: Channel News Asia

SINGAPORE: Ahead of the Xbox One launch in Singapore on Sept 23, gamers can now pre-order one of two official Xbox One bundles from Friday (Aug 15), Microsoft has announced.The Xbox One Launch Console Bundle, priced at S$639, will include the Xbox One console — which features a 500GB hard drive, Blu-ray player and built-in Wi-Fi — one Xbox One Wireless Controller, a chat headset, a HDMI cable, a free 14-day trial of Xbox Live Gold for new members and a digital copy of EA Sports FIFA 15. ...
Source: Channel News Asia   Full article at: Channel News Asia 5 days ago, 10:40pm CDT
 

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Update: 4

Sony sells more than 10 million PlayStation 4 consoles

Source: Asia One

SAN FRANCISCO - Sony Corp said on Tuesday that sales of its PlayStation 4 video game console, launched in November, has surpassed 10 million units.In April, the Japanese company said it had sold over 7 million PlayStation 4 units as of April 6 and was struggling to keep up with consumer demand.The console went on sale on November 29 in the United States, Western Europe and Latin America, around the same time that riv ...
Source: Asia One   Full article at: Asia One 1 week ago, 3:53am CDT
 

Update: 2

Xbox One Getting DLNA Support and Threaded Messages in Future Updates

Source: ign

Microsoft announced that they will be implementing new media streaming options in an upcoming update for the Xbox One. In a video released today, Xbox One engineer Ashley Speicher walked us through some of the upcoming features. Of the many upcoming features, one of the biggest is the DLNA support, which allows you to play media content through any connected USB device, with plans to add home network support shortly after. Along with this, you will see changes to your friends list, and threade ...
Source: ign   Full article at: ign Aug 12 2014, 4:40pm CDT
 

Update: 1

Sony PlayStation 4 console sales top 10 million

Source: CNBC

Console went on sale in November in US, W. Europe and Latin America, around the same time rival Microsoft's Xb ...
Source: CNBC   Full article at: CNBC Aug 12 2014, 2:17pm CDT
 

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<a href="/latest_stories/all/all/20" rel="author">Sumayah Aamir</a>
Sumayah Aamir (Google+) has deep experience in analyzing the latest trends.

 

 

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