Xbox One costs Microsoft $471 to build, according to IHS report

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Xbox One costs Microsoft $471 to build, according to an upcoming report from IHS.

The largest part of the cost comes from the Kinect camera which is packaged with the system.

According to the report, which via AllThingsD was gievn an early look at, Kinect’s manufacturing cost is $75 and the console’s combination CPU-GPU from AMD runs $110.

IHS releases its teardown report on PS4 last week, and followed it up with a video. The system, according to the firm, costs $381 to manufacture.

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Related Forum: Xbox Forum

Source: http://www.vg247.com/2013/11/26/xbox-one-costs-microsoft-471-to-build-according-to-ihs-report/

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"Xbox One costs Microsoft $471 to build, according to IHS report" :: Login/Create an Account :: 85 comments

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KnucklesTheEchidnaPosted:

you guys are forgetting that Microsoft isn't getting that 29$, its the middle man: Gamestop, walmart, amazon, etc.. thats getting that 29$ profit

CampfirePosted:

Wow, they don't really make that much profit off it.

ItalianPosted:

ZENU96 So if we buy a xbox one we're getting what we paid for. But they're making a huge profit off of each xbox.


$29 is not a huge profit off of each console. That is not even 10% of each console. Yes after millions of sales it is a lot, but you have to remember the amount of money they put in the making of the console. In the end they never actually make a profit off the console sales and they know that. Like I said below it is all about the hardware sales (games, downloadable content, etc.)

CEDPosted:

No console makes a big profit at the beginning the most profit they make is with games over years. That's why they wait such a long time to release a new console.

HuayraPosted:

I guessed right, I knew it was a round this much to build.

SIKSPosted:

So if we buy a xbox one we're getting what we paid for. But they're making a huge profit off of each xbox.

ItalianPosted:

KAQ Also if the console cost's $481 to build then why do they sell if cheaper ? because then they are loosing money next your going to say that the games cost $50 to make that's why they sell for $45 :/


Games cost millions to make, you can't really put a price on the game. To make the disc and the case probably costs less than $1, not kidding. Also, they sell the system for $500.

And also again, Xbox Original, Xbox 360, PS3 are actually sold at a less price than the costs when the first came out because they did not expect to make money through the Console sales, they expect to make money through the hardware sales (games, downloadable content, etc.)

HumanPosted:

why the hell is the kinect mandatory then?

QluPosted:

Thats crazy, I dont believe it. That would be a really small profit for them.

ProGamerzFTW1Posted:

KAQ Also if the console cost's $481 to build then why do they sell if cheaper ? because then they are loosing money next your going to say that the games cost $50 to make that's why they sell for $45 :/


They are selling Xbox One for $500.


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