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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ErebdraugPosted:

Spot I really can;t believe how little profit they are making here, they are barely getting their money back, I would have never though of this.


True they're not making much profit from the console itself, but they will still make hundreds of millions, if not billions from game sales and Xbox Live purchases.

-CPPosted:

Lia
-CP
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.


That is a horrible markup and the profit is minimal. They really shot themselves in the foot for selling it for only $500.


Not really, they will make a lot of money through games. The same thing happened with the 360, they lost moneyat the start of the 360's life and from then they've made quite a lot.


You are just talking out of your ass because you obviously have no idea what you are saying. The PS3 was sold at a loss (basically) and had to make money off of games. The 360 was nothing but profit. Now, the tables have turned completely. Do not try to tell me I am wrong, for I have actually taken the time to research the situations and I am taking accounting and business classes.

AMAPosted:

Have you all forgot about xbox live? They on average will get 2-3 up years of live out of each owner.

lordlustPosted:

Who gives a f*ck what it cost to make an Xbox One.

DissPosted:

I really wished they would of had an option to buy the console without the Kinect, but oh well...

LitecoinPosted:

I really can;t believe how little profit they are making here, they are barely getting their money back, I would have never though of this.

DissPosted:

-CP
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.


That is a horrible markup and the profit is minimal. They really shot themselves in the foot for selling it for only $500.


Not really, they will make a lot of money through games. The same thing happened with the 360, they lost moneyat the start of the 360's life and from then they've made quite a lot.

Evo8Posted:

And people wonder why the consoles "cost so much." In reality, they never have, so people should be grateful they are so cheap.

HonkPosted:

-CP
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.


That is a horrible markup and the profit is minimal. They really shot themselves in the foot for selling it for only $500.


They still get some profit from games that people buy from stores.

-CPPosted:

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.


That is a horrible markup and the profit is minimal. They really shot themselves in the foot for selling it for only $500.


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