wraggster
November 27th, 2013, 00:24
IHS teardown suggests that Microsoft, like Sony, is roughly breaking even on its new hardware
Microsoft (http://www.gamesindustry.biz/resources/directory/company/microsoft)microsoft.com (http://www.microsoft.com/)
The Xbox One costs gamers $499 to buy, and it costs Microsoft nearly that much to make. That's according toAllThingsD (http://allthingsd.com/20131126/microsofts-xbox-one-cost-90-more-to-build-than-sonys-ps4-teardown-shows/), which was given an early look at a teardown report of the system from research firm IHS.
All told, the firm estimates that each Xbox One costs Microsoft $471 in parts and manufacturing, compared to the $381 it pegged as Sony's PS4 costs (http://www.gamesindustry.biz/articles/2013-11-19-sony-nearly-breaking-even-on-ps4-hardware-report). But where Sony's expenditures mainly went to the CPU and memory, Microsoft's top-dollar components were the CPU and Kinect camera. The AMD microprocessor at the heart of the Xbox One was estimated to be about $110 with "at least" $75 devoted to the Kinect motion-sensing camera. Microsoft also opted for older, less costly memory than Sony did, so the Xbox One chips cost about $60, compared to the $88 Sony is believed to spend on each PS4's memory.
While it makes it difficult for Microsoft to turn a profit on the hardware after shipping and retailers take their cut, that cost of materials is still a significant improvement over the last generation. Shortly after the Xbox 360 launched, an iSuppli teardown put Microsoft's cost at $525 for the premium model of the hardware, which retailed for $399.
http://www.gamesindustry.biz/articles/2013-11-26-xbox-one-costs-USD471-to-make-report
Microsoft (http://www.gamesindustry.biz/resources/directory/company/microsoft)microsoft.com (http://www.microsoft.com/)
The Xbox One costs gamers $499 to buy, and it costs Microsoft nearly that much to make. That's according toAllThingsD (http://allthingsd.com/20131126/microsofts-xbox-one-cost-90-more-to-build-than-sonys-ps4-teardown-shows/), which was given an early look at a teardown report of the system from research firm IHS.
All told, the firm estimates that each Xbox One costs Microsoft $471 in parts and manufacturing, compared to the $381 it pegged as Sony's PS4 costs (http://www.gamesindustry.biz/articles/2013-11-19-sony-nearly-breaking-even-on-ps4-hardware-report). But where Sony's expenditures mainly went to the CPU and memory, Microsoft's top-dollar components were the CPU and Kinect camera. The AMD microprocessor at the heart of the Xbox One was estimated to be about $110 with "at least" $75 devoted to the Kinect motion-sensing camera. Microsoft also opted for older, less costly memory than Sony did, so the Xbox One chips cost about $60, compared to the $88 Sony is believed to spend on each PS4's memory.
While it makes it difficult for Microsoft to turn a profit on the hardware after shipping and retailers take their cut, that cost of materials is still a significant improvement over the last generation. Shortly after the Xbox 360 launched, an iSuppli teardown put Microsoft's cost at $525 for the premium model of the hardware, which retailed for $399.
http://www.gamesindustry.biz/articles/2013-11-26-xbox-one-costs-USD471-to-make-report