Microsoft Makes $28 Per Xbox One Sold As It Costs $471 To Build

We recently learned the PlayStation 4 only costs a total of $381 to build, which means its current selling price of $399 allows Sony to rake in just $18 per console that’s sold. Now that the Xbox One is out in the wild, IHS has once again estimated what it costs to build Microsoft’s next-generation console, and it looks like the company isn’t making much money with the sale of each console either.

IHS believes the combined parts and manufacturing of everything that comes within a retail box of the Xbox One, which includes the console, the Xbox One Kinect and the Xbox One controller, costs a total of $471. That makes the Xbox One around $90 more to manufacture when compared to the PlayStation 4, and it also means Microsoft is only making $28 per console that is sold.

The Xbox One Kinect alone costs $75 to manufacture, but the largest cost driver for the Xbox One is its microprocessor from chipmaker AMD. The AMD-made chip combines a CPU as well as its GPU and costs and estimated $110, which costs around $10 more than the AMD chip found inside of the PlayStation 4. Considering just how powerful the chip is and how important it’ll be for the future of next-gen gaming, we’re sure you can live with its price for the time being.

Daniel Perez
Categories: Gaming
Tags: Microsoft, Xbox, Xbox One