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

DieH@rd

Banned
Yes, that is correct, but initially they were going to use 4GB. Why was that?

Only 256MB chips were available, and they allocated 16 spots on the mobo for them. When 512MB chips arrived and devs pushed Sony to increase RAM size, Sony just replaced old chips for larger ones.
 

Phawx

Member
I don't believe it's luck. Sony has quite a bit more inside contacts and experience in the semi conductor industry.

More like, Sony wanted 4 GB of GDDR5 initially, and after speaking to developers were urged to go with 8 GB. The pricing worked out so that including 8 GB instead of 4 GB (with higher density chips being available).

Luck had very little to do with it.

Price has nothing to do with it. There were no 512MB GDDR5 chips before Q1 2013.

So then they were hedging their bets? Luck panned out?
 

Tobor

Member
Yes, that is correct, but initially they were going to use 4GB. Why was that?

A focus on gaming.

Let's remember why MS was so insistent on 8 GB from the outset. They needed it for all their non gaming extra OS nonsense.

That was the mistake that led us to where we are.
 
MS chip is more expensive due to eDRAM. That's offset by the lower cost of the DDR3 memory. The biggest cost differentiator is the Kinect sensor.
Notice I said pay AMD. As in, how much was the PS4 design contract vs the XB1 contract. I'm pretty sure AMD isn't that involved in manufacturing.

I want to know the prices if the design contracts, because the last indication we got is that MS poured a shit load more money into their project.
 

Phawx

Member
Only 256MB chips were available, and they allocated 16 spots on the mobo for them. When 512MB chips arrived and devs pushed Sony to increase RAM size, Sony just replaced old chips for larger ones.

I firmly believe this to be correct. But this also means that provided Sony *couldn't* get a decent supply of 4Gb chips they would have shipped with 2Gb.
 

Phawx

Member
A focus on gaming.

Let's remember why MS was so insistent on 8 GB from the outset. They needed it for all their non gaming extra OS nonsense.

That was the mistake that led us to where we are.

Let's not forget that the Xbox 360 having more VRAM lead to better looking multiplatform games.

If the PS4 only had 4GB, how much would be usable by games? 3GB? Xbox One would have considerably more space for textures.
 

DBT85

Member
So then they were hedging their bets? Luck panned out?

GopherD said Sony were helping with the push for 4Gb modules.
My point is MS has more silicon in their console, so they will benefit more from new process to reduce costs. BUT not by much. In the short term 1-2 years Sony will probably benefit more due to complexity of redesign for Xbone. But in 3-6 years Xbone should see more cost saving in its APU. Bone APU will always be more expensive, cause it is larger. but will see more cost savings because more of the Bone is on the APU.

But this is all neglible, we are talking 10% Bone cost saving over PS4. With other factors like Kinect, its a wash.

EDIT: We also don't know what the GDDR commodity market will be like, so that is a huge variable for Sony. MS can weigh DDR3 over DDR4 and move when it benefits them.

Can they move to DDR4 that easily? DDR3 prices certainly aren't going to go down while GDDR5 8Gb modules could come to the PS4 in 18 motnhs or so.
 
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


Just calling it luck is a disservice. The PS4 was a well executed plan from conception to manufacturing.
 

KoopaTheCasual

Junior Member
Well, we can pretty much say goodbye to the idea of a cheap Kinectless SKU. Even without Kinect, the XB1 would sell for $399-$449, which still doesn't make it appealing compared to the PS4, while STILL generating a loss. MS is better off (from a business perspective) just keeping the Kinect in the box. Yeesh.
 
http://bgr.com/2013/11/26/xbox-one-profit-estimate/

Despite selling more than a million Xbox Ones in less than 24 hours after launch, Microsoft is not going to make money off its latest gaming console anytime soon, prompting some analysts to advise a spin-off for the Xbox division. Barron’s points us to note sent on Friday by Nomura Equity Research analyst Rick Sherlund to investors claiming that Microsoft stands to lose more than $1 billion this year from its Xbox venture, a number that looks slightly better than the initial $2 billion Xbox One loss forecast from the same research firm.

Sherlund estimates that Microsoft will sell around 4.2 million Xbox One units, although the number may be too optimistic considering existing competition from the PlayStation 4 and early supply problems. Furthermore, in Sherlund’s opinion, the Xbox One can’t become a strong player in the entertainment business, as it faces increased competition from non-console devices including the iPhone, iPad and other smartphones and tablets that can be used for games and media consumption.

Therefore, the Xbox One would be a “good candidate to spin-off to shareholders,” Sherlund concludes. This isn’t the first time we’ve seen the analyst take this stance regarding Microsoft’s Xbox business. In previous notes to investors, he argued that the Xbox division should be sold, right alongside another cash-bleeding Microsoft business, the Bing search engine. Interestingly, rumored Microsoft CEO candidate Stephen Elop would reportedly be in agreement with these suggestions.
http://bgr.com/2013/11/26/xbox-one-profit-estimate/

bgr is not where you want to get information from
 

entremet

Member
Sony hardware competency
MS software competency

Nothing more to be said.

It seems Sony has tightened their supply chain nicely a la Apple.
 

LoveCake

Member
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.

So for $28 the X1 could of had DDR5, i wonder how much the 32MB of ESRAM costs, so the difference could even less.

What i would like to know is the costs of the HDD on the PS4 & how much it would of cost to have had the SHHD (hybrid drives) people seem to be buying already in the PS4, a 1TB drive with 16GB or 32GB of SHD, people are already spending extra for this themselves so if the PS4 was $60 more i think people would pay, if there was a PS4 version with a bigger drive & also if it was faster.
 

drproton

Member
Let's not forget that the Xbox 360 having more VRAM lead to better looking multiplatform games.

If the PS4 only had 4GB, how much would be usable by games? 3GB? Xbox One would have considerably more space for textures.

Only 32 MB of high speed ESRAM seems like a bigger bottleneck to me, in that scenario.
 
I thought the posts above made it pretty clear that it would still cost more.

On a side note, Sony must be getting one heck of a special discount from the hardware manufacturers. I smell unfair business practices afoot.
No, they just were smarter with their memory setup going for GDDR5, which not only resulted in a better/faster system and easier development but didn't require work arounds like ESRAM that resulted in less room for the rest of the GPU and increased manufacturing costs for nothing.

In other words, they did a great job and now it's paying off.
 

CoG

Member
So for $28 the X1 could of had DDR5, i wonder how much the 32MB of ESRAM costs, so the difference could even less.

The financial cost is one thing, there's also the cost of increased complexity for developers which will haunt them the rest of this generation. I am sure some MS hardware engineer thought they were clever saving $18 to go with ESRAM but that's the problem with over-engineering solutions.
 
Why are people forgetting about better cooling solution, better Wifi support and better build quality? Those things adds some bucks, If someone is guessing.

It was already know that Xbone APU was more expensive, since it have higher DIE area.
 

EL CUCO

Member
MS had all the same parts and resources (if not more) available to them as Sony did...but they were missing one MEGATON thing
ibadbqd5rlbxq49sdc.gif
 

KungFucius

King Snowflake
Wow that much to Kinect?

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

It's not AMD they are paying it is the Foundry. I think it is TSMC. THe AMD design is a single cost with perhaps a royalty per chip that will not show up on a teardown. I think the Xbox die may cost more if it is bigger.
 

Phawx

Member
GopherD said Sony were helping with the push for 4Gb modules.

That makes sense, but *pushing* for something doesn't guarantee success. If push came to shove, Sony would have elected to use 2Gb chips. Things panned out.

My point is, when Cerny first started designing the PS4 and you asked him 4GB or 8GB of ram, what would he have said?
 

DBT85

Member
Why are people forgetting about better cooling solution, better Wifi support and better build quality? Those things adds some bucks, If someone is guessing.

It was already know that Xbone APU was more expensive, since it have higher DIE area.

Looking at the internals of both I would not say the Xbone has better build quality.
 
GopherD said Sony were helping with the push for 4Gb modules.

I expect part of the $28 premium is seed money for Samsung to invest in 4Gbit chips. Over a 5m production contract I expect Sony "contributed" $100m to Samsung for accelerated 4Gbit production investment. While Samsung will have other customers for 4Gbit, Sony are clearly the largest buyer and will therefore be expected to stump up some of the investment cost in addition to the regular premium. Samsung have a similar investment model with Apple. I think Apple and Sharp have entered into a similar agreement also. Good to see Sony step up to the plate with the PS4.
 
No wonder share holders want to spin off Xbox.

(A) very ugly picture is painted for Xbox this generation. I wonder where things would stand if this whole entertainment push never happened.

Did senior management honestly believe they could do battle with Apple, Google and Sony at the same time and hope to win? An "all-in-one" gaming and home entertainment device meant they had to make compromises (hence old favourites making for the exit door). Perhaps that old Xbox engineer was correct in his assessment when he remarked that the PlayStation 3 era gave Microsoft a false sense of security.
 

tipoo

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


Nothing out of the ordinary. Microsoft went with DDR3 for fear of shortages of GDDR5 (or having to cut it down to 4GB), and cut out some of the GPUs silicon budget in favor of eSRAM to compensate.

Even Sony wasn't sure they could do 8GB GDDR5 (developers planned for 4) until close to launch/production.
 

kaching

"GAF's biggest wanker"
My point is, when Cerny first started designing the PS4 and you asked him 4GB or 8GB of ram, what would he have said?
Hopefully, he would have said neither and instead waited to see what they could get given their ultimate silicon budget for the console. Which does seem to appear to be what he did...
 
Sony certainly have had things fall into place pretty nicely. I'm pretty certain they started off on the ps4 by thinking about what sort of hardware it would pack. They've said as much. This led them to end up with a very well designed system. Microsoft started off by thinking about to what they wanted their next generation console to do. They probably started looking at hardware later in the process and their design shows that.
 
That makes sense, but *pushing* for something doesn't guarantee success. If push came to shove, Sony would have elected to use 2Gb chips. Things panned out.

My point is, when Cerny first started designing the PS4 and you asked him 4GB or 8GB of ram, what would he have said?

4GB until people complained about it so they threw out the PS Eye for 8GB. Like what happened with the Xbox 360 memory situation.

They wanted to create a console for developers and this is what we got.
 
Let's not forget that the Xbox 360 having more VRAM lead to better looking multiplatform games.

If the PS4 only had 4GB, how much would be usable by games? 3GB? Xbox One would have considerably more space for textures.

So what? PS4 still have more TMU's, so it could move more and better textures.

360 got better multiplats because it have a far better GPU, not because a minor difference in allocated VRAM. That only make devs life easier.
 
Blu Ray drive was technically more advanced than anything inside a 360.

By the time PS3 launched production costs for X360 were $323. For comparison PS3 costed $840 to make. There is more than just blu-ray in that huge difference. PS3 really was huge clusterfuck and money drain.
 

injurai

Banned
Does MS have shit manufacturing relations? Or were their engineers drinking their own koolaid while planning from production?
 

EL CUCO

Member
Did senior management honestly believe they could do battle with Apple, Google and Sony at the same time and hope to win? An "all-in-one" gaming and home entertainment device meant they had to make compromises (hence old favourites making for the exit door). Perhaps that old Xbox engineer was correct in his assessment when he remarked that the PlayStation 3 era gave Microsoft a false sense of security.

Jack of all trades, master of none.
 

PG2G

Member
You guys need to take a look at the WHY of things for once.

Microsoft had a goal for their console which required a minimum of 8 gigs of RAM. They designed a console that could, with minimal risk, meet that.

Microsoft could have went with GDDR5 but they would have had to take a risk that they could not release a console in 2013.
 

Tobor

Member
Let's not forget that the Xbox 360 having more VRAM lead to better looking multiplatform games.

If the PS4 only had 4GB, how much would be usable by games? 3GB? Xbox One would have considerably more space for textures.

That was quite the debate pre 8GB announcement. There was no clear cut answer as to which was better, less and faster, or more and slower. Besides, we kept hearing about how much of the ram was reserved for the Xbox OS.

Regardless, it's clear MS chose the wrong path. That's not luck. It's a focus on ease of game development paying off.
 
Breakdown comparison for those interested.

PS4

Console: $348
- CPU/GPU: $100
- RAM: $88
- Power Supply: $20
- Optical Drive: $28
- Hard Drive: $37
- Other: $75

Controller: $18
Box Contents: $6
Assembly: $9

Total: $382


Xbox One

Console: $357
- CPU/GPU: $110
- RAM: $60
- Power Supply: $25
- Optical Drive: $28
- Hard Drive: $37
- Other: $98

Controller: $15
Kinect: $75
Box Contents: $10
Assembly: $14

Total: $471


I'm honestly surprised. I thought the console would cost a good $50 less, given DDR3 and simpler design.


No only is the Xbone base price higher,the ESRAM is making it harder to produce then the PS4. Sony can produce their box cheaper and in twice the volume then MS!

This is NOT a good situation for Microsoft to be in.
 
I remember being happy yet sad about the 8GDDR5 announcement, I thought it would skyrocket the price out of the affordable range. Glad it worked out differently.
 

Phawx

Member
Hopefully, he would have said neither and instead waited to see what they could get given their ultimate silicon budget for the console. Which does seem to appear to be what he did...

Okay, so let me flip the question. If you would have asked MS engineers designing the Xbox One how much ram it would have, what would they say?

My point is engineers have a job and they do the best with the requirements given to them. They needed the ESRAM to offset the DDR3 bottleneck so they went and spent the silicon on that.

If you guys want me to admit that the PS4 is a better system all around, hell check my post history. But let's not pretend that Sony had this crystal ball and knew what to expect. Or have we already forgotten the PS3?

I'm not saying that Sony didn't do everything in their power to arrange a certain outcome. But the rhetoric on here that Sony was a seer is kind of nuts.
 
Sony will benefit from software sales by being the market leader and console of choice for multiplatforms, but on the other side I expect MS will monetise their base much better than Sony so I expect it to be even over the short term. In the medium term I think Sony will be in a better position to profit, but it's too early to say conclusively.

Well Sony does have PS+ this gen to help off set some cost since you need it for MP.
So MS also lose out if less people buy the console medium term .
Going to be interesting to see things play out since that extra money means a good amount to both parties .
 
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