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.

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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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BRSPosted:

-Brandon That's a lot more than I thought it would.


That's a 29 dollar profit.

HOFPosted:

That a whole lot more than i thought it would. I guess the price wont be going down anytime soon.

AlmightyHelixPosted:

That's a lot more than I thought it would.

VampiricPosted:

pyroboy926
-CP
Lia
-CP
ZENU96 So if we buy a xbox one we're getting what we paid for. But they're making a huge profit off of each xbox.


That is a horrible markup and the profit is minimal. They really shot themselves in the foot for selling it for only $500.


Not really, they will make a lot of money through games. The same thing happened with the 360, they lost moneyat the start of the 360's life and from then they've made quite a lot.


You are just talking out of your ass because you obviously have no idea what you are saying. The PS3 was sold at a loss (basically) and had to make money off of games. The 360 was nothing but profit. Now, the tables have turned completely. Do not try to tell me I am wrong, for I have actually taken the time to research the situations and I am taking accounting and business classes.

By any chance are you sitting in a bath tub of your own period blood?


Lololololololololol epcwin

BooleanPosted:

I can't really see this console costing $471 to make.

KonviictedPosted:

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.

pyroboy926Posted:

-CP
Lia
-CP
ZENU96 So if we buy a xbox one we're getting what we paid for. But they're making a huge profit off of each xbox.


That is a horrible markup and the profit is minimal. They really shot themselves in the foot for selling it for only $500.


Not really, they will make a lot of money through games. The same thing happened with the 360, they lost moneyat the start of the 360's life and from then they've made quite a lot.


You are just talking out of your ass because you obviously have no idea what you are saying. The PS3 was sold at a loss (basically) and had to make money off of games. The 360 was nothing but profit. Now, the tables have turned completely. Do not try to tell me I am wrong, for I have actually taken the time to research the situations and I am taking accounting and business classes.

By any chance are you sitting in a bath tub of your own period blood?

SanyoPosted:

theres your reason why it's $500

DusknoirPosted:

29$ profit on one system millions of systems selling plus XBL expenses they are wiping themselves with 50$ bills

IntPosted:

Microsoft are just too rich to even become in a massive loss, know matter what they will be making their money back.


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