Xbox One costs Microsoft $471 to build, according to IHS report

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Xbox One costs Microsoft $471 to build, according to an upcoming report from IHS.

The largest part of the cost comes from the Kinect camera which is packaged with the system.

According to the report, which via AllThingsD was gievn an early look at, Kinect’s manufacturing cost is $75 and the console’s combination CPU-GPU from AMD runs $110.

IHS releases its teardown report on PS4 last week, and followed it up with a video. The system, according to the firm, costs $381 to manufacture.

Posted:
Related Forum: Xbox Forum

Source: http://www.vg247.com/2013/11/26/xbox-one-costs-microsoft-471-to-build-according-to-ihs-report/

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"Xbox One costs Microsoft $471 to build, according to IHS report" :: Login/Create an Account :: 85 comments

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RantPosted:

Wow that's a lot of money for Xbox to produce 1 console.

TywinPosted:

Gossip They dont make that much profit from it then...


Think about it.
They made $29 million PROFIT on the first day alone.

TywinPosted:

That is crazy.
I figured the profit margin would be a lot bigger than that.

Toasty-Posted:

It was a good expense. But they should've made consoles without kinect. Some people don't want it. But those who do can pay the extra. I kinda like the kinect but sme people don't.

JamesPosted:

Honestly not surprised at all. It has a lot of good features

DreamsPosted:

Konviicted
Touchable
Vepr That's quite a large sum of money, no wonder it costs a lot to buy, they need profit.




Axe
Dreams
NDSU Cost is 499$ and they are saying it takes them $471 to build one. My ass Microsoft will only get around 20-30$. I don't believe this.


it all adds up they sell millions of consoles


Its not like all of that money goes straight to the companies wealth. A lot of that money will most likely go towards microsofts many staff salaries, and stuff like this as well.
Microsoft invest billions in to just research alone...


They do and that is because they can. I would bet that Microsoft is within the top 5 companies in the world if your talking money.


exactly they have the funds and resources to do these kinda things

TortarunePosted:

They make the systems at a loss to the company in order to attract more users to purchase accessories, in-game currency, etc. Thats where they make their profits, so the system itself doesn't even have to make its own individual profit

-PigPosted:

Im not surprised by this really

KindPosted:

They make it look like it costs that but I'd say it costs significantly less.

GossipPosted:

They dont make that much profit from it then...


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