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Xbox One reportedly costs approximately $471 to build

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$90 more than PS4

One of the biggest sticking points of the on-going console war for a lot of people is the $100 price difference between Sony's PlayStation 4 and Microsoft's Xbox One. A lot of speculation chalked the increased cost up to the Xbox One's packaged Kinect peripheral, and (surprise!), that estimation was mostly spot-on.

AllThingsD got a detailed breakdown from research firm IHS of the individual price of the Xbox One's parts. It turns out that Kinect accounts for $75 of the $471 that IHS says it costs Microsoft to build an Xbox One.

However, Kinect isn't the bulk of the expense. The single most expensive piece of hardware inside an Xbox One is the AMD CPU-GPU combination, which is estimated to run approximately $110. This part is $10 more expensive than the chip inside the PlayStation 4.

It was reported last week that the same firm ran equivalent tests on the PS4, and it was found to cost $381 to produce. It's no longer a thinly veiled mystery as to where the Xbox One's increased price point is substantiated.

Microsoft's Xbox One Costs $90 More to Build Than Sony's PS4, Teardown Shows [AllThingsD] [Image source]




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Brett MakedonskiManaging Editor // Profile & Disclosures
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