PS4 NewsReport: Xbox One Cost $90 More To Make Than PlayStation 4 - PS4 News

Members Login: Register | Why sign up? | Forgot Password?

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.

Tags: ps4, playstation 4, xbox one, ps4 price, xbox one cost

11/26/2013 9:46:36 PM Ben Dutka

Put this on your webpage or blog:
Email this to a friend
Follow PSX Extreme on Twitter

Share on Twitter Share on Facebook Share on Google Share on MySpace Share on Delicious Share on Digg Share on Google Buzz Share via E-Mail Share via Tumblr Share via Posterous

Comments (28 posts)

Temjin001
Tuesday, November 26, 2013 @ 10:00:17 PM
Reply

MS will have to decouple the KINECT sooner or later to remain competitive in the coming years.

Last edited by Temjin001 on 11/26/2013 10:01:34 PM

Agree with this comment 2 up, 1 down Disagree with this comment

Temjin001
Tuesday, November 26, 2013 @ 10:11:13 PM

and so people know if they're scratching their heads because of the difference between AMD chip costs. Why would the PS4's chip be less than the XO's if the PS4's is more powerful?
It's because the X0 uses 32MB of highly expensive ESRAM integrated right on the CPU die.
This high speed memory is to help offset the slower DDR3 memory the system uses in general. The actual horse power of the PS4's chip is considerably higher, regardless.

Last edited by Temjin001 on 11/26/2013 10:12:23 PM

Agree with this comment 2 up, 1 down Disagree with this comment

Simcoe
Tuesday, November 26, 2013 @ 10:29:48 PM

Also the size of the chip, even though the the PS4 has more CU than MS's, the ESRAM on the chip also takes up space so MS gets less chips per wafer than Sony does.

Agree with this comment 2 up, 1 down Disagree with this comment

Kryten1029a
Tuesday, November 26, 2013 @ 10:41:49 PM
Reply

No one has commented on the really cool thing here: After losing money for years on the PS3, Sony is actually turning a profit on the PS4 from DAY ONE! Add in what they'll make from the other sources (platform licensing fees, digital sales and PS Plus) and they're going to be very healthy going forward.

Last edited by Kryten1029a on 11/26/2013 10:42:25 PM

Agree with this comment 5 up, 1 down Disagree with this comment

Temjin001
Tuesday, November 26, 2013 @ 11:44:54 PM

there may be other expenses related to the PS4 that goes beyond just the cost of it's individual components.

Agree with this comment 3 up, 0 down Disagree with this comment

SaiyanSempai
Wednesday, November 27, 2013 @ 1:23:34 AM

There are a lot of distribution and retail costs in addition to the manufacturing cost. Sony is still losing money initially on each PS4 but breaks even after the buyer purchases a PS+ membership and one game. According to Sony.

Last edited by SaiyanSempai on 11/27/2013 1:24:38 AM

Agree with this comment 2 up, 0 down Disagree with this comment

Temjin001
Wednesday, November 27, 2013 @ 1:09:18 AM
Reply

Wonder how things will heat up once the SteamMachines become mass produced and marketed.
Open vs Closed in an environment heavily controlled by third parties will make things very interesting. Hope Sony starts dialing in the exclusives or Nintendo may be the only one who endures things long term.

Agree with this comment 3 up, 1 down Disagree with this comment

Knightzane
Wednesday, November 27, 2013 @ 3:11:01 AM

That thing runs around 1500 starting price from what I've read. If people are complaining about a 400$ console i doubt its going to do well.

Agree with this comment 1 up, 0 down Disagree with this comment

kraygen
Wednesday, November 27, 2013 @ 4:19:17 AM

From what I read steam machine will start around $800 and top out at around $1500.

Agree with this comment 0 up, 0 down Disagree with this comment

Beamboom
Wednesday, November 27, 2013 @ 5:29:33 AM

Well, it's all up to the manufacturers how the Steam-machines will be, both in regards to pricing and performance.

But the three prototypes designed by Valve are something like this:

Low-end model: A thin client, primarily designed for remote play/streaming only, for those who already got a gaming rig. Low price.

Mid-range model: Performance similar to the PS4/Xbone machines. The console competitor model.

High-end model: All plugs pulled, Titan graphics and so forth. Equal to a high-end gaming PC.

Agree with this comment 0 up, 0 down Disagree with this comment

Temjin001
Wednesday, November 27, 2013 @ 10:30:00 AM

a hot story making headlines right now is ibuypower's $500 steam machine. It has specs that can compete easily with the now next-gen.
everything though comes down to EA, Activision, and Ubisoft. If Valve can't persuade support from them the Steam Machine will basically be a high powered Ouya.

Agree with this comment 1 up, 0 down Disagree with this comment

Beamboom
Wednesday, November 27, 2013 @ 12:03:12 PM

No machine is more than the software that runs on it, and Ouya don't have the Steam catalogue. So no matter what happens it will definitely be more than a high powered Ouya.

Agree with this comment 0 up, 0 down Disagree with this comment

Kiryu
Wednesday, November 27, 2013 @ 1:39:51 AM
Reply

A console with double the power costs 90$ lesser, Sony you always will be the Technology Innovator.

Agree with this comment 6 up, 3 down Disagree with this comment

PHOENIXZERO
Sunday, December 01, 2013 @ 3:56:42 PM

50% more powerful, not 100% more powerful. But yeah, it's thanks to Kinect and the hot garbage that is the XBO's APU.

Agree with this comment 0 up, 0 down Disagree with this comment

___________
Wednesday, November 27, 2013 @ 2:40:59 AM
Reply

not exactly surprising the xbox is more expensive to make, i mean look at the frigging fan and heatsink on it!
nice to see someone cares about reliability.........

Agree with this comment 1 up, 12 down Disagree with this comment

Xombito
Wednesday, November 27, 2013 @ 4:34:27 AM

Yet there are still reports of Xbone having issues. Hmmm...

Agree with this comment 8 up, 1 down Disagree with this comment

___________
Wednesday, November 27, 2013 @ 7:42:03 AM

disc drives have nothing to do with overheating.

Agree with this comment 1 up, 9 down Disagree with this comment

Masszt3r
Wednesday, November 27, 2013 @ 8:38:44 AM

Right... because the competitor consoles are widely known for overheating.

Agree with this comment 4 up, 0 down Disagree with this comment

slow and smart
Wednesday, November 27, 2013 @ 9:06:29 AM

well reliability is more than overheating,quality of the discdrive for example.
Also the xboxone has a failure when it comes to the 50/60herz tv watching in europe.

What a great reliability the xbots yel,whahaha.
[wake up and be realistic,and yes also some ps4 have issues]

Agree with this comment 6 up, 0 down Disagree with this comment

Temjin001
Wednesday, November 27, 2013 @ 11:39:57 AM

give blank line a break. disk drives really don't have much to do with a console overheating.

Agree with this comment 0 up, 5 down Disagree with this comment

slow and smart
Wednesday, November 27, 2013 @ 11:57:21 AM

of course not but it has everything to do with reliability what he also mentioned

Last edited by slow and smart on 11/27/2013 11:58:31 AM

Agree with this comment 5 up, 0 down Disagree with this comment

PlatformGamerNZ
Wednesday, November 27, 2013 @ 2:53:13 AM
Reply

that doesn't come as a surprise to many that the kinect an the power brick are a larger added cost and well i'm gud with a smaller more powerful system with out a camera and a power brick for less cash for the console.

happy gaming =)

Agree with this comment 0 up, 0 down Disagree with this comment

Beamboom
Wednesday, November 27, 2013 @ 5:23:46 AM
Reply

I don't understand why an external power supply should be more expensive than an internal one (if I understand correctly)... The only difference should be the casing?

Agree with this comment 3 up, 0 down Disagree with this comment

Temjin001
Wednesday, November 27, 2013 @ 10:59:33 AM

it's crazy that the XO is both bigger than the PS4 and ALSO has an external PSU.

Agree with this comment 3 up, 0 down Disagree with this comment

Beamboom
Wednesday, November 27, 2013 @ 12:04:03 PM

Yeah I don't get that.

Agree with this comment 0 up, 0 down Disagree with this comment

Dukemz_UK
Wednesday, November 27, 2013 @ 1:53:40 PM

Xbone = Lazy design.
Then again, Sony have the edge when it comes to designing and manufacturing high end hardware

Agree with this comment 2 up, 0 down Disagree with this comment

ricksterj
Sunday, December 01, 2013 @ 12:15:11 PM
Reply

Let's see if expense ultimately trumps efficiency eh?

Agree with this comment 0 up, 0 down Disagree with this comment

berserk
Sunday, December 01, 2013 @ 12:36:16 PM
Reply

Of course it cost more because of kinect and ya , i rather have a better memory then that thing that should have been left on the Wii .

Agree with this comment 0 up, 0 down Disagree with this comment

Leave a Comment

Please login or register to leave a comment.

Our Poll

What do you think of the Destiny beta?
It's awesome! Can't wait for September!
It's only good, but I'm having fun.
Eh, it's okay, but I expected more.
It sucks, period.

Previous Poll Results