Xbox One's Parts Are About $90 More Expensive Than PS4's

Xbox One's Parts Are About $90 More Expensive Than PS4's

The Xbox One costs $100 more than its competitor, but where exactly is all that extra money going?

Now that both Sony and Microsoft's next-gen systems are on the market, there's only one logical thing to do. No, not play games and enjoy the next-gen experience - tear them apart and see what makes them tick! Research firm IHS opened up a PlayStation 4 and Xbox One to examine the internal components of each machine, and estimate how much it costs the manufacturers to produce the consoles. According to the firm's findings, the more expensive Xbox One costs about $90 more to build than the PS4.

The total costs of production for both systems were pretty close to the market price: the Xbox One costs roughly $471 to produce (including a controller and Kinect), and sells for $500 in stores. The PS4, meanwhile, costs Sony $381 to build, and sells for $400. Unsurprisingly, neither manufacturer is making much (if any) profit from console sales, especially once you subtract a cut for the retailers' shelf space.

As for the breakdown of component costs, the biggest contributor to the price difference in the Kinect unit, which is included with every Xbox One and has no equivalent in the PS4 package. Analysis indicates that the Kinect itself costs about $75 to produce. Microsoft spent an extra $10 on its AMD microprocessor when compared to the PS4's similar chip, though the PS4 spent $28 more on higher-end RAM. Interestingly, the Xbox One itself only costs about $332 when you add up all its parts: the extra $139 comes from the Kinect ($75), controller ($15), external power supply ($25), headset ($10), and assembly ($14).

At the end of the day, both consoles are pretty similar in raw power, but it's interesting to see how each of them got there.

Source: All Things Digital

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So if you take away the kinect they cost about the same.

NightHawk21:
So if you take away the kinect they cost about the same.

Kinda what I took away from this as well. Which just confirms what we all suspected from the beginning. I guess it's nice to have confirmation, though.

From what I've seen, retailer markup is 15% which fits nicely into these figures. Sony's gotta be happy they don't have to gouge themselves on console costs by pushing new expensive tech out. Selling the PS3 so "cheap"[1] at launch in a bid to get market dominance with the blueray probably didn't feel all that great at the time(with consumer complaints about how expensive it was as icing on the cake).

___________

[1]- If I recall correctly, blueray players at the PS3's launch were around $5,000, so the PS3 was cheap when compared to other blueray players at the time. I will never say the PS3 at launch was cheap for a console or cheap to the average consumer... I just want to make sure people don't think I've lost my mind and consider the launch PS3 cheap.

NightHawk21:
So if you take away the kinect they cost about the same.

Which is unsurprising, considering Microsoft has said the Kinect added an extra $100 to the price since day one. Microsoft is just too dead-set and idiotic in their ways with thinking the Kinect is some revolutionary thing, when it's something most people end up ignoring anyways and should just be an optional addition.

so as usual, microsoft doesn't want my money by forcing some useless motion piece of crap onto us. exact reason why i couldn't stand the wii and won't be getting an xbone now (unless the price drops drastically to the point it'd be silly not to get one.)

400$ kinectless xBone next year, who wants to bet?

Cognimancer:
<Unsurprisingly, neither manufacturer is making much (if any) profit from console sales, especially once you subtract a cut for the retailers' shelf space.

In a decade of retail, I never saw a substantial markup on a console. Granted, most of that was at Wal-Mart, but the point remains. I think my store made a few cents on both the PS and PS2. Not percent, but actual pennies.

Phrozenflame500:
400$ kinectless xBone next year, who wants to bet?

Bet? I'm counting on it.

Though I'm not sure I'm buying one. I'm still geared towards a PS4 if I get a new console.

It is kind of nice to know they're not the Tshirt industry that makes a shirt for 3 dollars then slaps some graphic on it and the price increases to 18.99 by the sheer force of magic and pixies!

Scorpid:
It is kind of nice to know they're not the Tshirt industry that makes a shirt for 3 dollars then slaps some graphic on it and the price increases to 18.99 by the sheer force of magic and pixies!

Well, hold on a second now. The base shirt itself may cost a measly $3, but add onto that the cost of putting any kind of graphic on it, (perhaps $5-7) and add in the cost of shipping, (most likely $5) and another fee (probably $3) for retailer shelf space, and you got a product that costs $16 in total to produce and sell.

Arnoxthe1:

Scorpid:
It is kind of nice to know they're not the Tshirt industry that makes a shirt for 3 dollars then slaps some graphic on it and the price increases to 18.99 by the sheer force of magic and pixies!

Well, hold on a second now. The base shirt itself may cost a measly $3, but add onto that the cost of putting any kind of graphic on it, (perhaps $5-7) and add in the cost of shipping, (most likely $5) and another fee (probably $3) for retailer shelf space, and you got a product that costs $16 in total to produce and sell.

I work at a department store and i've seen the unit cost to make and ship a T-shirt. The little slip our store gets to say how much we paid for each shirt. It's 3$ - 4$ depending on how fancy the graphic is.

I'm calling it the benjamin albatross from now on, hahah

Arnoxthe1:

Scorpid:
It is kind of nice to know they're not the Tshirt industry that makes a shirt for 3 dollars then slaps some graphic on it and the price increases to 18.99 by the sheer force of magic and pixies!

Well, hold on a second now. The base shirt itself may cost a measly $3, but add onto that the cost of putting any kind of graphic on it, (perhaps $5-7) and add in the cost of shipping, (most likely $5) and another fee (probably $3) for retailer shelf space, and you got a product that costs $16 in total to produce and sell.

Nope
image

So if I'm actually keen on kinect 2.0 then the xbox is pretty solid deal? Or at least it would be if I didn't live in Australia where retail prices are derived from madness, death and black-magic.

josemlopes:

Nope
image

But that's egyptian cotton. A material that is, well, really nice and really expensive.

Arnoxthe1:

josemlopes:

Nope
image

But that's egyptian cotton. A material that is, well, really nice and really expensive.

um.. since when?

I have Egyptian cotton bed sheets they cost a fraction of what this tshirt does, lol!

ah, clothes industry you be funny.

-Dragmire-:
From what I've seen, retailer markup is 15% which fits nicely into these figures. Sony's gotta be happy they don't have to gouge themselves on console costs by pushing new expensive tech out. Selling the PS3 so "cheap"[1] at launch in a bid to get market dominance with the blueray probably didn't feel all that great at the time(with consumer complaints about how expensive it was as icing on the cake).

___________

[1]- If I recall correctly, blueray players at the PS3's launch were around $5,000, so the PS3 was cheap when compared to other blueray players at the time. I will never say the PS3 at launch was cheap for a console or cheap to the average consumer... I just want to make sure people don't think I've lost my mind and consider the launch PS3 cheap.

Development, marketing and overhead aren't included, so they are still selling these consoles at a loss.

Phrozenflame500:
400$ kinectless xBone next year, who wants to bet?

I'd bet on it being $350, if it's $400 Sony will immediately drop the price on PS4 to keep a hold on the CoD/FIFA/Madden market who just buy what ever's cheapest.

cursedseishi:

NightHawk21:
So if you take away the kinect they cost about the same.

Which is unsurprising, considering Microsoft has said the Kinect added an extra $100 to the price since day one. Microsoft is just too dead-set and idiotic in their ways with thinking the Kinect is some revolutionary thing, when it's something most people end up ignoring anyways and should just be an optional addition.

Ya. I saw a review for the Xbone that was pretty spot on I think. He said if you're more interested in games like Just dance or fitness games, than the kinect has something to offer, but if you're looking for more sit on the couch controller in hand games, the kinect is still just gimicky.

josemlopes:

Arnoxthe1:

Scorpid:
It is kind of nice to know they're not the Tshirt industry that makes a shirt for 3 dollars then slaps some graphic on it and the price increases to 18.99 by the sheer force of magic and pixies!

Well, hold on a second now. The base shirt itself may cost a measly $3, but add onto that the cost of putting any kind of graphic on it, (perhaps $5-7) and add in the cost of shipping, (most likely $5) and another fee (probably $3) for retailer shelf space, and you got a product that costs $16 in total to produce and sell.

Nope
image

Holy Smokes.. is that real? What.. why.. I.. I am dumbfounded.

On topic.. sort of.. Does anyone know if the external power supply has benefits vs. in the casing. I can only think of improved heat distribution?

Whytewulf:

josemlopes:

Arnoxthe1:

Well, hold on a second now. The base shirt itself may cost a measly $3, but add onto that the cost of putting any kind of graphic on it, (perhaps $5-7) and add in the cost of shipping, (most likely $5) and another fee (probably $3) for retailer shelf space, and you got a product that costs $16 in total to produce and sell.

Nope
image

Holy Smokes.. is that real? What.. why.. I.. I am dumbfounded.

On topic.. sort of.. Does anyone know if the external power supply has benefits vs. in the casing. I can only think of improved heat distribution?

Well, it's easier to replace. Other than that it's pretty much a big tumor on your power cable. Needless to say, I didn't like that shit last generation either.

 

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