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Xbox One Costs $90 More to Build Than PS4, Teardown Shows ($75 Kinect 2)

Chobel

Member
"At an estimated cost of $110 — about $10 more than the AMD chip found in the PS4 — it’s the single most expensive component in the system."

doesn't this alone proves that the single most expensive component in the system of xbone is more powerful than that of the ps4.

Reason being that all these costs are estimates. They must seen something in the chip of xbone to estimate that it's $10 more expensive than the one in the ps4.

A8pNprD.gif
 

joesiv

Member
I'm just surprised and a bit disappointed that neither are taking a hit for launch. This is like the first generation that the heavy hitters aren't selling at a loss since when... PS1?

Imagine how much more powerful these could have been if they did take a hit... PS4 could have the rumored 3TF+... *drools*..
 

Raonak

Banned
So they're both likely taking a bath on the consoles? I thought this gen would be different in that regard honestly.

The PS3 cost like 900 to make, sold for 600.

PS4 doesn't come anywhere near the loss they were making last gen, so in that case, this gen IS different.
 

maomao

Banned
Then you shouldn't have said this



We've been through months of FUD so forgive me for being short. Of course these are estimates, and yes I suspect they are based on complexity. The XB1 APU is more complex due to the addition of ESRAM.

Maybe I shouldn't say powerful, but I'm just speculating whether the $10 (10%) more (ESRAM added, various differences in the chip) make it ">" that of the ps4
 

Zee-Row

Banned
Xbox One should get a redesign as soon as next year. The console is a step back from a design standpoint since you can't put it vertical.
 

Zen

Banned
Umm, shouldn't we wait for the financials before we say this?

Not sure what point there would be in winning a war that leaves your company on the ropes financially.

That's the thing I'm personally most interested in this gen (aside from gaming).

How will these companies justify the losses they're generating with these machines?

Software and accessories will break them even per unit sold very quickly. PS4 sold an average of 2.54 software per PS4 owner in NA when it launched, that's probably already generating a profit.
 

rokkerkory

Member
Would be very interesting to see cost reduction estimates over time... whether ps4 can maintain that $90 edge... if so, that's going to be really really difficult for MS to get over.

When PS4 hits $299 and X1 is at $399 would be a really tough proposition.
 

mattp

Member
Welcome to optical media. Every single device I have ever owned that used optical media has broken or was unable to read a disc after years. They are a ticking time bomb.

you're not wrong, but the first ps2 model and the ps1 were WAY worse than most. those drives were faulty as fuck
 

Nafai1123

Banned
Maybe I shouldn't say powerful, but I'm just speculating whether the $10 (10%) more (ESRAM added, various differences in the chip) make it ">" that of the ps4

">" in what way though? Being more complex while also being less powerful is not an achievement MS should have unlocked.
 

old

Member
It looks like Sony got a better deal on many of the hardware parts. That's impressive. Being that Sony also makes phones, laptops, tablets, cameras, and smart TVs it leads me to think they may have leveraged the additional bulk buying of parts for those other devices for better deals on PS4 parts. Like they went to a supplier and said, "give us a better deal on parts for the PS4 and we'll also buy these other different parts we need for our phones/cameras/laptops/tablets from you as well." We all know you get a better deal by buying in bulk, but Sony could very well be negotiating to buy in even bigger bulk by combining supply contracts across numerous devices.

And if that is true then that only further speaks to the power Sony has in delivering great hardware at lower prices to gamers. If Sony can buy parts cheaper than almost anyone else can, then it's going to be very hard to compete with them on a hardware-to-price basis.

That's the best way I can make sense of these findings. I can't prove any of it though. I'm probably wrong. Interested to see if someone with more expertise could chime in on how Sony got such better deals than MS.
 

Biker19

Banned
Would be very interesting to see cost reduction estimates over time... whether ps4 can maintain that $90 edge... if so, that's going to be really really difficult for MS to get over.

When PS4 hits $299 and X1 is at $399, it would be a really tough proposition.

I agree. Should Sony manages to get the price of the PS4 down to the mass-market price of $300, it's game over for Microsoft. They're pretty much in a huge bind here. Either they will:

1.) Keep the price at $500 & lose most of the sales & marketshare to Sony, or

2.) Lower the price to $400 or even less than that in hopes of playing catch up to Sony in sales, while pissing off shareholders/investors as they'll take even more losses off of each Xbox One console being sold.

Like I said earlier, Microsoft's in a "Damned if you do, Damned if you don't" scenario.
 

cchum

Member
It looks like Sony got a better deal on many of the hardware parts. That's impressive. Being that Sony also makes phones, laptops, tablets, cameras, and smart TVs it leads me to think they may have leveraged the additional bulk buying of parts for those other devices for better deals on PS4 parts. Like they went to a supplier and said, "give us a better deal on parts for the PS4 and we'll also buy these other parts we need for our phones/cameras/laptops/tablets from you as well." We all know you get a better deal by buying in bulk, but Sony could very well be negotiating to buy in even bigger bulk by combining supply contracts across numerous devices.

And if that is true then that only further speaks to the power Sony has in delivering great hardware at lower prices to gamers. If Sony can buy parts cheaper than almost anyone else can, then it's going to be very hard to compete with them on a hardware-to-price basis.

That's the best way I can make sense of these findings. I can't prove any of it though. I'm probably wrong. Interested to see if someone with more expertise could chime in on how Sony got such better deals than MS.

Sony shopped around. I think I remember reading on beyond3d that Powervr submitted a bid, but it wasn't powerful enough. Larrabee was in serious consideration until intel couldn't hit the deliverable timeframe. Microsoft was probably happy with AMD from last gen.

Dat bargaining power of buyers
 

Pain

Banned
"At an estimated cost of $110 — about $10 more than the AMD chip found in the PS4 — it’s the single most expensive component in the system."

doesn't this alone proves that the single most expensive component in the system of xbone is more powerful than that of the ps4.

Reason being that all these costs are estimates. They must seen something in the chip of xbone to estimate that it's $10 more expensive than the one in the ps4.
ESRAM.
 

maomao

Banned
">" in what way though? Being more complex while also being less powerful is not an achievement MS should have unlocked.

well, it has the ESRAM to compensate for slower ddr3. I think ">" in such a way that it's estimated to be $10 more expensive. I don't know about being less powerful (comparing the chip alone, not the console as a whole). But there is certainly a disadvantage of harder to program.

Quote from the other article

"Necessarily, programming for such an architecture will be more complex. However, the theoretical peak performance of the two systems could be very similar."
 
well, it has the ESRAM to compensate for slower ddr3. I think ">" in such a way that it's estimated to be $10 more expensive. I don't know about being less powerful (comparing the chip alone, not the console as a whole). But there is certainly a disadvantage of harder to program.

Quote from the other article

"Necessarily, programming for such an architecture will be more complex. However, the theoretical peak performance of the two systems could be very similar."
No. Just fucking no. This bullshit has been debunked ad nauseam. It's all over the internet, man. Someone better than me needs to post the list again. Nibs?
 

avaya

Member
well, it has the ESRAM to compensate for slower ddr3. I think ">" in such a way that it's estimated to be $10 more expensive. I don't know about being less powerful (comparing the chip alone, not the console as a whole). But there is certainly a disadvantage of harder to program.

Quote from the other article

"Necessarily, programming for such an architecture will be more complex. However, the theoretical peak performance of the two systems could be very similar."

Bigger more expensive and slower is the definition of fuck-up. It is like the perfect fuck-up.
 

Raonak

Banned
well, it has the ESRAM to compensate for slower ddr3. I think ">" in such a way that it's estimated to be $10 more expensive. I don't know about being less powerful (comparing the chip alone, not the console as a whole). But there is certainly a disadvantage of harder to program.

Quote from the other article

"Necessarily, programming for such an architecture will be more complex. However, the theoretical peak performance of the two systems could be very similar."

-PS4 has fast GDDR5 RAM vs xbones slow DDR3 RAM
-Xbone has 32mb ESRAM, which is to speed up their slow ram (still slower than PS4, IIRC) and at the same time creating a 32mb bottleneck, being hard to program for AND being hella big/expensive, which is why their APU costs more than the PS4's even though it's weaker.

-they have the same CPU
-PS4 has a 50% stronger GPU.


PS4 is without a doubt a more powerful console. there is no secret sauce. this topic has been discussed to death.
 
While Sony hit a home run hardware wise. Their downfall in the States is a lackluster online service. While GAF love may prefer offline gaming, the Word I'm hearing among social circles is people are willing to give up power for a well integrated gaming experience. Seamless party chat and gaming lobbies. Online voice quality and overall network dependability.

I don't own a One. But I've heard from several people who were not thrilled with their first PSN experience and have expressed a better overall experience online gaming on the Bone.

Sony has much work to do, software wise, if they want to be THE gaming console for the shooter crowd. So much potential is there.

Well Integrated Gaming Experience = Seamless Party Chat and gaming lobbies

Have you seen "The Xbox One friends and party system is horrible"?

overall network dependability = Xbox One multiplayer & store functions down as Microsoft issues status update

And please tell me how good the online experience of Forza is

Especially how it intuitively knew vinny really wanted to race by himself and not at all play with Jeff or anything

[Note the GB reference isn't a bug, the party system is just stupidly unintuitive, they start the forza section about an hour and 40 minutes in]

I will grant you better quality voice chat but yeah there is no clear objectively better online experience this gen.
 

fvng

Member
they should have sold the hardware at cost or at a minor loss and make up the difference with software royalty or accessories. womp womp
 

Foghorn Leghorn

Unconfirmed Member
"At an estimated cost of $110 — about $10 more than the AMD chip found in the PS4 — it’s the single most expensive component in the system."

doesn't this alone proves that the single most expensive component in the system of xbone is more powerful than that of the ps4.

Reason being that all these costs are estimates. They must seen something in the chip of xbone to estimate that it's $10 more expensive than the one in the ps4.

Not sure if serious. Yeah, they saw something, it wasn't Titanfall though, just a big chunk of expensive ESRAM.
 

slapnuts

Junior Member
The Esram is on the chip for X1 I presume.

Looks like Sony made some excellent choices with the design of the PS4 if its true its cheaper for superior hardware. Although Sony has been in the hardware business long enough to give them an edge which proves true here but then again we are factoring in the Kinect..so if that was not there the price point of each machine is much more reasonable i suppose. They "sony" have a more robust relationship with hardware vendors than Microsoft i guess and it shows. Although it still baffles me that Microsoft's console is a decent amount less powerful than PS4...considering everything MS wants to do with its next gen console.

I always wondered how much "spying" goes on between these two companies when developing their hardware for their consoles. I always looked at it as something like the Cold War Era in how the Soviet Union and America had so many spies working during the nuclear developments, space age developments,etc....i have always assumed such tactics go on with even things as little as consoles...i know that may sound a little "out there" but in my honest opinion...these types of things happen in the console hardware business...no? Just a wild guess like i mentioned but it is one that can possibly be true. I guess the reason why i think about stuff like this is that consoles usually come out somewhat similar in power with the competition...Bah maybe im crazy thinking like this lol
 

HoodWinked

Member
better comparison is to bundle the price of the memory, esram is there to offset for cheaper memory. xb1 is $18 less but i dont think its really worth the savings.

xbox1
$110 APU + $60 RAM = $170

ps4
$100 APU + $88 RAM = $188
 

TyrantII

Member
I'm shocked the APU costs more than the PS4's. ESRAM, I guess? Kinect actually costs less than I expected.

ESRAM, lower yields due to size/complexity, and more materials. Don't forget that XB1 APU is larger than the PS4, so that GPU size comparison is a little skewed looking at it 1:1. It's not really that big physically.

Still a major power difference.
 
The BoM for Kinect 1 was estimated at $56, but bkilian on the Beyond3D forum (former Xbox audio engineer) said this:



and this:




I wouldn't be surprised if the Kinect 2 costs them way more than these guys are estimating.
MS is making Kinect 2 on their own, so there shouldn't be patent fees this time. No tilt motor either. It should be pretty accurate.


well, it has the ESRAM to compensate for slower ddr3. I think ">" in such a way that it's estimated to be $10 more expensive. I don't know about being less powerful (comparing the chip alone, not the console as a whole). But there is certainly a disadvantage of harder to program.

Quote from the other article

"Necessarily, programming for such an architecture will be more complex. However, the theoretical peak performance of the two systems could be very similar."
We already discussed this to death dude. We know exactly how powerful each console is. So as long as the author didn't find any secret sauce the theoretical output is not similar. The chip in the Bone is indeed $10 more expensive than the one in the PS4. It is also much weaker than the one in the PS4. That's all there is to it. There is no magic or something we haven't discovered. The reason for why it's more expensive and still weaker than the PS4 are all over GAF and in this thread. You really don't need to speculate.
 

TyrantII

Member
better comparison is to bundle the price of the memory, esram is there to offset for cheaper memory. $18 less but i dont think its really worth the savings.

xbox1
$110 APU + $60 RAM = $170

ps4
$100 APU + $88 RAM = $188

Problem is MS DDR3 will always be $60. There's not much room for cost improvement there, since it's already at the lower bound for cost reductions. GDDR5 2GB memory chips could drop 50% over the next 3-4 years, some of which would be profits for Sony, some passed on as savings to consumers.

As long as ATI doesn't screw over Sony like Nvidia did with the PS3, PS4 is going to have a nice cost scaling and price reduction over it's lifetime. That means cheaper for consumers, and getting it into more households will be easier at lower price points.
 

Mr Moose

Member
"At an estimated cost of $110 — about $10 more than the AMD chip found in the PS4 — it’s the single most expensive component in the system."

doesn't this alone proves that the single most expensive component in the system of xbone is more powerful than that of the ps4.

Reason being that all these costs are estimates. They must seen something in the chip of xbone to estimate that it's $10 more expensive than the one in the ps4.

Gooselaughing.gif
MisterXMedia? Is that you? Keeping that dream alive.

But no, it's the eSRAM.
 

HoodWinked

Member
Problem is MS DDR3 will always be $60. There's not much room for cost improvement there, since it's already at the lower bound for cost reductions. GDDR5 2GB memory chips could drop 50% over the next 3-4 years, some of which would be profits for Sony, some passed on as savings to consumers.

As long as ATI doesn't screw over Sony like Nvidia did with the PS3, PS4 is going to have a nice cost scaling and price reduction over it's lifetime. That means cheaper for consumers, and getting it into more households will be easier at lower price points.

yup GDDR5 will go down in price im pretty sure GDDR3 did through 360/PS3 lifecycle. DDR3 may even go up in price as DDR4 starts to ramp up production in a couple years.

i just wanted to make the point cause people have selective blindness.
 

hesido

Member
better comparison is to bundle the price of the memory, esram is there to offset for cheaper memory. xb1 is $18 less but i dont think its really worth the savings.

xbox1
$110 APU + $60 RAM = $170

ps4
$100 APU + $88 RAM = $188

Actually, they can't claim to have saved $18, because that's only considering the RAM metric. They could have gone with GDDR5 with 12CU's still, and it would be a much smaller APU and cheaper, let's guess, 85$ because that ESRAM occupies more than 1/5th of the die. So the GDDR5 extra cost could easily be offset by the smaller APU. After all, 12CU's is what they claim to be balanced, and they can feed them with ESRAM's ~150GB/sec bandwidth.

So I have 0 amount of ideas to explain why they went with that route. Somebody really made a very, very bad decision, IMHO.
 
I always wondered how much "spying" goes on between these two companies when developing their hardware for their consoles. I always looked at it as something like the Cold War Era in how the Soviet Union and America had so many spies working during the nuclear developments, space age developments,etc....i have always assumed such tactics go on with even things as little as consoles...i know that may sound a little "out there" but in my honest opinion...these types of things happen in the console hardware business...no?

Yes! I can easily envision Mark Cerny sitting on the lavatory reading The Craft of Intelligence by Allen Dulles. Intelligence, counter-intelligence, etc. Did it ever cross your mind if the "leaked" Microsoft briefing document was unauthentic, designed to mislead the competition? You must consider these things. I bet Microsoft are sending fake bits of information through internal channels to see where it emerges. Be careful CBOAT, they're coming after you!
 

CLEEK

Member
I can't believe the cost difference between DDR3 and GDDR5 is only a measly $28. Microsoft fucked up so badly with the architecture of the One. The sums are all fucked. The less powerful APU in the One cost $10 more than the PS4's APU, due to the ESRAM.

The massive irony is if MS had just used 8GB of GDDR5, the cost of the BOM would likely be the same. ESRAM made the APU expensive, and took away silicon budget they could have been used for performance.
 
we're talking about computer chips from the same vendor at the same time period. the cost should be estimated based on powers (number of transistors). I really don't have any insight on how they estimate the cost, but I bet it's not based on size. The thing is not a fruit.

number of transistors IS the die size...

As a die gets bigger yields go down, not linearly but exponentially

MS wastes a very large amount of transistors on the 32MB of esram so they have no die space left for a beefy gpu inside the APU (unless they made an even BIGGER die which would again have much lower yields and be even more expensive)

Lots of transistors, no power to show for it , it's a failure
 

Iacobellis

Junior Member
I'm just surprised and a bit disappointed that neither are taking a hit for launch. This is like the first generation that the heavy hitters aren't selling at a loss since when... PS1?

Imagine how much more powerful these could have been if they did take a hit... PS4 could have the rumored 3TF+... *drools*..

Sony is absolutely taking a loss, it's in their DNA. You have to factor in more than the bill of materials.
 

BigDug13

Member
Looks like Sony made some excellent choices with the design of the PS4 if its true its cheaper for superior hardware. Although Sony has been in the hardware business long enough to give them an edge which proves true here but then again we are factoring in the Kinect..so if that was not there the price point of each machine is much more reasonable i suppose. They "sony" have a more robust relationship with hardware vendors than Microsoft i guess and it shows. Although it still baffles me that Microsoft's console is a decent amount less powerful than PS4...considering everything MS wants to do with its next gen console.

I always wondered how much "spying" goes on between these two companies when developing their hardware for their consoles. I always looked at it as something like the Cold War Era in how the Soviet Union and America had so many spies working during the nuclear developments, space age developments,etc....i have always assumed such tactics go on with even things as little as consoles...i know that may sound a little "out there" but in my honest opinion...these types of things happen in the console hardware business...no? Just a wild guess like i mentioned but it is one that can possibly be true. I guess the reason why i think about stuff like this is that consoles usually come out somewhat similar in power with the competition...Bah maybe im crazy thinking like this lol

Sony really went in with one mandate on Cerny's plate. Talk to developers, AMD, etc and determine the best course of action to produce the best gaming platform that is the easiest to develop for.

XBO seemed to have too many hands in the kitchen with specific mandates like support for a Windows-based OS with 8GB of RAM available and Kinect interface hardware reserves.

It's no wonder with the laser focus on one side and the muddled "let's make it do a little of everything" focus on the other.
 
Sony really went in with one mandate on Cerny's plate. Talk to developers, AMD, etc and determine the best course of action to produce the best gaming platform that is the easiest to develop for.

XBO seemed to have too many hands in the kitchen with specific mandates like support for a Windows-based OS with 8GB of RAM available and Kinect interface hardware reserves.

It's no wonder with the laser focus on one side and the muddled "let's make it do a little of everything" focus on the other.

It really is sad but Sony with Cerny leading the way is far more reminiscent of J Allard's Xbox than modern MS could ever hope for

Obviously I love Sony's current hardware/software approach but wish MS had a similar approach, at least prioritize the game machine first
 

DieH@rd

Banned
number of transistors IS the die size...

As a die gets bigger yields go down, not linearly but exponentially

MS wastes a very large amount of transistors on the 32MB of esram so they have no die space left for a beefy gpu inside the APU (unless they made an even BIGGER die which would again have much lower yields and be even more expensive)

Lots of transistors, no power to show for it , it's a failure

However, density of ESRAM transistor is higher than the one used for building GPU/CPU blocks. I honestly expected larger chip.

BTW, PS4's APU error redundancy is drastically better than with Xbone. PS4 has 2 CU's for redundancy that can resolve problem on VERY LARGE GPU area. On Xbone, GPU redundancy covers less than 1/4 of the chip. Plus, ESRAM transistor density can cause larger than expected power bleeding effects.

Its really no surprise why Tretton mentioned "phenomenal yields" for PS4 APU.
 

Iacobellis

Junior Member
It really is sad but Sony with Cerny leading the way is far more reminiscent of J Allard's Xbox than modern MS could ever hope for

Obviously I love Sony's current hardware/software approach but wish MS had a similar approach, at least prioritize the game machine first

Microsoft is going for the what makes them the most money. Disguise your media box as a games console and bam. Products like the Chromecast, Roku, and Apple TV belong to a niche market. Microsoft initially went with games for the Xbox and 360 was the smoothest way to penetrate the market and steal thunder from Sony.
 

ShapeGSX

Member
Microsoft is going for the what makes them the most money. Disguise your media box as a games console and bam. Products like the Chromecast, Roku, and Apple TV belong to a niche market. Microsoft initially went with games for the Xbox and 360 was the smoothest way to penetrate the market and steal thunder from Sony.

How does media make them more money?
 
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