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Report: Xbox One costs $471 to build

by Andrew Yoon, Nov 26, 2013 10:15am PST
Related Topics – Microsoft, Kinect, Xbox One

Xbox One costs $100 more than PS4 at retail. And unsurprisingly, it costs Microsoft almost that much more to build their console versus Sony. Even less surprising: a bulk of that cost comes from the Kinect camera bundled with the system.

While PS4 costs $381 to build, the folks at IHS have figured out that the cost of manufacturing Xbox One is $471.

According to the report (via AllThingsD), the cost of manufacturing Kinect (pictured) is $75. That alone explains the difference in cost between the two next-gen machines. However, the single biggest cost of making Xbox One is the combination CPU-GPU from AMD. At an estimated cost of $110, it costs $10 more than the AMD chip found in PS4.

Of course, as with other teardowns, this cost only covers the materials to build the systems--not any R&D or marketing or shipping or retail costs that also add to the cost of actually bringing a box to market.




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