We know that the PlayStation 4 only costs $381 to build, and that its selling price of $399 means that Sony makes just $18 per console that’s sold. Now that the Xbox One is available to everyone, IHS has estimated what it costs to build Microsoft’s new console. Just like Sony, it looks like the company isn’t making much money on each console.
IHS thinks that with parts and manufacturing of everything that comes in a retail box for the Xbox One: the console, the Xbox One Kinect and the Xbox One controller, that it costs a total of $471. That would make the Xbox One cost around $90 more to manufacture compared to the PS4, and it also means Microsoft is only making $28 per console. Companies usually don’t make much money on new consoles at first.
The Xbox One Kinect by itself costs $75 to make, but the largest cost for the Xbox One is its microprocessor from AMD. The chip combines a CPU and a GPU and costs about $110. It costs about $10 more than the AMD chip inside of the PlayStation 4. But don’t worry, game console companies have many ways in which they make money, like charging for online multiplayer play for instance, to name just one.
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