Xbox One costs Microsoft $471 to build, according to IHS report
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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Comments
TywinPosted:
Gossip They dont make that much profit from it then...
Think about it.
They made $29 million PROFIT on the first day alone.
Toasty-Posted:
It was a good expense. But they should've made consoles without kinect. Some people don't want it. But those who do can pay the extra. I kinda like the kinect but sme people don't.
DreamsPosted:
KonviictedTouchableVepr That's quite a large sum of money, no wonder it costs a lot to buy, they need profit.
AxeMicrosoft invest billions in to just research alone...DreamsNDSU Cost is 499$ 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.
They do and that is because they can. I would bet that Microsoft is within the top 5 companies in the world if your talking money.
exactly they have the funds and resources to do these kinda things
TortarunePosted:
They make the systems at a loss to the company in order to attract more users to purchase accessories, in-game currency, etc. Thats where they make their profits, so the system itself doesn't even have to make its own individual profit
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