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

P

Poetic.Injustice

Member
The verdict from a report that IHS will release later today was shared exclusively with AllThingsD: The combined cost of parts and manufacturing everything that comes with the Xbox One — the console, the Kinect and the controller — comes out to $471, or about $90 more than the cost of Sony’s PS4, which debuted last week.

The Xbox One sells at retail for $499, giving Microsoft little, if any, room for much of a profit for now.

At least $75 of that cost is derived from the Kinect motion-sensing add-on that comes bundled with the console. (The PS4 has nothing comparable in its box.) But the biggest cost driver inside the Xbox console, said Andrew Rassweiler, the IHS analyst who led the teardown team, is the microprocessor from chipmaker Advanced Micro Devices. Like a similar AMD-made chip found inside the PS4, this one is a combination of a CPU and a graphics-processing unit (GPU) that handles gaming graphics. 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.
Click to expand...

The other major silicon inside the Xbox One (shown in an exploded view above) is the memory. Unlike the PS4, which used higher-end GDDR5 memory chips, the Xbox One contains older — more common and less costly — DDR3 memory. Memory chips came from SK Hynix, and added about $60 to the cost, or about $28 less than what’s found in the PS4.

The parts used to assemble the console itself — not including the Kinect, the controller or anything else — cost $332, Rassweiler estimated, meaning that the other items add about $139 to the cost. The controller costs about $15, and contains Wi-Fi and Bluetooth components from Marvell Technology.
Click to expand...

http://allthingsd.com/20131126/micr...-more-to-build-than-sonys-ps4-teardown-shows/
 
I

iamshadowlark

Banned
At least $75 of that cost is derived from the Kinect motion-sensing add-on that comes bundled with the console
Click to expand...


Wow that much to Kinect?

Lol how much did Sony pay AMD to get a significantly superior chip at the same cost?
 
U

Ubersnug

Member
Wonder how much the PS4 camera costs to make and added to the BoM of the PS4. How comparable would the XOne and PS4 be then, BoM wise?
 
F

FullMetaltech

Member
Interesting. Seems it would be cheaper than the PS4 if they made a Kinectless one. Thy can save cost by removing the sensor and hve the OS just run regularly. But seems they really are forcing it in people.
 
Interfectum

Interfectum

Member
I think this says more about Sony than Microsoft. Kaz ninja move in February caught everyone off guard, especially MS.
 
N

Nightengale

Member
Fuck, so at their current 'profitability out-the-box' approach, removal of Kinect would still not allow the system to go below $399.
 
A

andromeduck

Member
iamshadowlark said:
Wow that much to Kinect?

Lol how much did Sony pay AMD to get a significantly superior chip at the same cost?
Click to expand...

they got lucky

DDR3 prices spiked because of that Hynix fire in china and GDDR5 prices dropped enough to jump to 8 gigs

because MS decided to go with DDR3 they had to make up for the bandwidth with ESRAM which took away area from the GPU
 
M

Maninthemirror

Banned
The memory is the only thing more expensive in ps4 console than Xbox one by an amount of $28 and if you take that out the xbox one becomes even more expensive than the ps4
 
B

BruiserBear

Banned
But the biggest cost driver inside the Xbox console, said Andrew Rassweiler, the IHS analyst who led the teardown team, is the microprocessor from chipmaker Advanced Micro Devices. Like a similar AMD-made chip found inside the PS4, this one is a combination of a CPU and a graphics-processing unit (GPU) that handles gaming graphics. 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.
Click to expand...

It's amazing they're paying more for a less powerful GPU.
 
S

skc

Banned
Isn't everbody missing something?

If my maths is correct, Sony makes an 18$ profit off their box while Microsoft makes $28.

No?
 
LiquidMetal14

LiquidMetal14

hide your water-based mammals
I think you can see that Sony probably made some customization's there. They seem to have played it smart as it should be clear by now.
 
T

TacticalFox88

Banned
Sony got a more powerful chip at less the cost than MS?

I'm sorry but...
KuGsj.gif
 
N

Nightengale

Member
skc said:
Isn't everbody missing something?

If my maths is correct, Sony makes an 18$ profit off their box while Microsoft makes $28.

No?
Click to expand...

Distributor margin, retail margin, cost of packaging/shipping, transfer pricing tax, other misc.cost.

BoM doesn't tell the whole story.
 
Z

zomgbbqftw

Banned
FWIW we have it at $493, I can't release the breakdown though because of a policy change at work. :(

We have both the PS4 and Bone costs slightly higher than the iSuppli ones.
 
G

gundamkyoukai

Member
Looks like ESram and Kinect really hurt MS on price .

zomgbbqftw said:
FWIW we have it at $493, I can't release the breakdown though because of a policy change at work. :(

We have both the PS4 and Bone costs slightly higher than the iSuppli ones.
Click to expand...

Suppose to ask but who do you think can cut cost faster MS or Sony zomg .
 
F

fallen_dawn

Member
skc said:
Isn't everbody missing something?

If my maths is correct, Sony makes an 18$ profit off their box while Microsoft makes $28.

No?
Click to expand...

I think that everyone is just surprised how much it costs Microsoft to make the box, especially the cost of the APU in relation to the PS4.
 
S

skc

Banned
Nightengale said:
Distributor margin, retail margin, cost of packaging/shipping, transfer pricing tax, other misc.cost.

BoM doesn't tell the whole story.
Click to expand...

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

Arttemis

Member
The One's processor being $10 more expensive shocked me, but it must be the implementation of eSRAM and the additional complexity. The DDR3 cost differential still allows MS to save a few bucks overall compared to the PS4 architecture, but not nearly enough for it to seem worth it when these things will be competing head to head for the next seven years.
 
S

Steroyd

Member
Like a similar AMD-made chip found inside the PS4, this one is a combination of a CPU and a graphics-processing unit (GPU) that handles gaming graphics. 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.
Click to expand...

That's impressive for the wrong reasons.
 
J

JoJo UK

Unconfirmed Member
FullMetaltech said:
Interesting. Seems it would be cheaper than the PS4 if they made a Kinectless one. Thy can save cost by removing the sensor and hve the OS just run regularly. But seems they really are forcing it in people.
Click to expand...
I have an XB1, inserting an Kinect would be VERY painful indeed!
 
G

gundamkyoukai

Member
skc said:
So they're both likely taking a bath on the consoles? I thought this gen would be different in that regard honestly.
Click to expand...

Well it's not really that bad compare to last gen .
Can't remember MS numbers but Sony was losing $300 on each console early on .
 
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