Xbox One costs Microsoft US$90 more to build than Sony's PS4

Home / News / Xbox One costs Microsoft US$90 more to build than Sony’s PS4

The Xbox One costs Microsoft around US$471 to build according to IHS analysts, meaning that there’s little to no profit made per console once you take marketing and R&D costs into account.

That’s US$90 more than the US$381 it costs Sony to produce the PS4, and if the estimates are accurate, both companies are expected to make a loss on the consoles for at least part of the following year.

They’re hoping to make it up with games sales of course, and this teardown helps explain why the Xbox One’s price is considerably higher than its PS4 rival.

It’s all down to Kinect

Unsurprisingly, the Xbox One’s bundled Kinect sensor contributes to the extra expense, accounting for around US$75 of the total cost.

The biggest price tag however is the powerful AMD processor, which racks up US$110 in costs.

Read our Xbox One and PS4 reviews and check out our Xbox One vs PS4 in-depth comparison to see which one of the console giants you’ll be backing this Christmas.

[AllThingsD via Tech Crunch]

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Esat has been a gadget fan ever since his tiny four-year-old brain was captivated by a sound-activated dancing sunflower. From there it was a natural progression to a Sega Mega Drive, a brief obsession with hedgehogs, and a love for all things tech. After 7 years as a writer and deputy editor for Stuff, Esat ventured out into the corporate world, spending three years as Editor of Microsoft's European News Centre. Now a freelance writer, his appetite for shiny gadgets has no bounds. Oh, and like all good human beings, he's very fond of cats.