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.

Posted:
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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TomorrowLandPosted:

-CP
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.
Actually, the 360 WAS indeed made at a loss.

Microsoft have reported between $3-8billion in losses from the Xbox 360 but completely turned that around in selling games...

TomorrowLandPosted:

Vepr That's quite a large sum of money, no wonder it costs a lot to buy, they need profit.




Axe
Dreams
NDSU Cost is 499$ and they are saying it takes them $471 to build one. My ass Microsoft will only get around 20-30$. I don't believe this.


it all adds up they sell millions of consoles


Its not like all of that money goes straight to the companies wealth. A lot of that money will most likely go towards microsofts many staff salaries, and stuff like this as well.
Microsoft invest billions in to just research alone...

GutPosted:

Opened How much is the console to buy as a customer like myself in US Dollar i only know in Sterling.


500 without tax in USD so they're making a small profit off the console, usually manufacturers lose money on the console and make it back off games

TomorrowLandPosted:

Pin
Monster-Munch They arnt making alot of profit.


They are dude. Per US console, perhaps not. But they sold 1m in the first 24 hours. They're also making alot per console overseas - it costs 429GBP here in the UK which is around $700USD!
And they give at least 90% of that money for import tax...

PinPosted:

Monster-Munch They arnt making alot of profit.


They are dude. Per US console, perhaps not. But they sold 1m in the first 24 hours. They're also making alot per console overseas - it costs 429GBP here in the UK which is around $700USD!

ZirJohnPosted:

steam machine also costs $500 but is much better

GazziPosted:

Euphoric lol, it will be sold for $150 in 3 years. So... yeah...


are you insane? lol and have fun waiting 3 years for next gen

gmlukensPosted:

Well it looks like he price is fair...

AdamuPosted:

They arnt making alot of profit.

B16BPosted:

lol, it will be sold for $150 in 3 years. So... yeah...


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