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

Nov 27 2013, 3:56am CST | by , in News | Gaming

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

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.

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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