Report: Xbox One Cost $90 More To Make Than PlayStation 4
Why does the Xbox One cost $100 more than the PlayStation 4 at retail? Well, quite simply because it costs almost $100 more to make.
According to the hardware summary from research firm IHS (as cited by AllThingsD), the total cost of parts and manufacturing for Microsoft's next-gen console comes to about $471, while Sony's machine only cost about $381.
Unsurprisingly, "at least $75" of the $471 for the Xbox One comes from the Kinect camera that comes packaged with every system. The most expensive item was the Xbox One's AMD chip, which goes for around $110; the PS4's AMD chip costs about $100. IHS analyst Andrew Rassweiler said that both chips are "very powerful" and "you might call them a gaming console on a chip." As for memory, the Xbox One's DDR3 memory chips stem from SK Hynix and cost around $60, which is $28 less than the PS4's higher-end GDDR5 memory chips.
Additionally, Microsoft's console has an external power supply, which costs around $25 to produce. Therefore, it seems about right that the unit has a retail price of $499, and it makes sense that the PS4 is priced at $399. ...in my estimation, I'd rather have the higher-end memory than freakin' Kinect, but whatever. I'm sure others see it differently.
11/26/2013 9:46:36 PM Ben Dutka