/// Microsoft’s Xbox One Costs $90 More to Build Than Sony’s PS4, Teardown Shows

November 26, 2013  |  All Things Digital


With two significant game console releases recently, research firm IHS has been working a little extra overtime these days. After doing surgery on Sony’s Playstation 4, the team gave Microsoft’s Xbox One the same treatment this week to get a peek at its electronic innards in order to estimate what it costs to make. And the verdict from a report that IHS will release later today was shared exclusively with AllThingsD : The combined cost of parts and manufacturing everything that comes with the Xbox One — the console, the Kinect and the controller — comes out to $471, or about $90 more than the cost of Sony’s PS4, which debuted last week . The Xbox One sells at retail for $499, giving Microsoft little, if any, room for much of a profit for now. At least $75 of that cost is derived from the Kinect motion-sensing add-on that comes bundled with the console. (The PS4 has nothing comparable in its box.) But the biggest cost driver inside the console, said Andrew Rassweiler, the IHS analyst who led the teardown team, is the microprocessor from chipmaker Advanced Micro Devices. Like a similar AMD-made chip found inside the PS4, this one is a combination of a CPU and a graphics processing unit (GPU) that handles gaming graphics. At an estimated cost of $110 — about $10 more than the AMD chip found in the PS4 — it’s the single most expensive component in the system.

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Microsoft’s Xbox One Costs $90 More to Build Than Sony’s PS4, Teardown Shows


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