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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LinearPosted:

undisclosed CPU and GPU combo only cost $100!?!? WHAT. Thats very cheap. Now i know they arent paying consumer prices but still it is extremely low priced


You can but it at consumer price for not too much more

KanashiiPosted:

I think it's rather pointless engaging in a console war yet again on this. Just accept companies need to make money and Sony and Microsoft are the same company with a different name.

BigRedMachinePosted:

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

MaggardoPosted:

Xbox One costs 471 US dollars to build, and it costs Sony 381 US dollars to produce a PS4!

DollPosted:

I guess this will explain to everyone why the console needed to be $499.

They need to make a profit, like every big company out there.

AxePosted:

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.

PlusnetPosted:

I could see this being true. They do need to make a profit. I thought the console would be cheaper honestly.

DreamsPosted:

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

VEVOPosted:

Highly believable actually. They make profit from everything else, not the console itself. Considering it as like that on previous gen consoles too. The PS3 would actually put Sony in the hole in terms of core console profits. Not sure on the 360 though. If anything, that manufacture price is an achievement.

NDSUPosted:

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.


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