Microsoft makes $10 more than Sony for each Xbox One console sold
The past two weeks have been very hectic for gamers. We had the Sony PS4 launch and the Xbox One launch a week between each other and aside from minor issues, overall, both systems had an exceptional launch.
But what’s not exceptional is the amount each company makes from each console sold. The PS4 goes for $399 while the Xbox One goes for $499. The $100 difference is very clear and that’s because the Xbox One comes with the Kinect included.
According to research firm HIS, they have reported that the Xbox One costs Microsoft $471 to build and the PS4 to only cost $381 to build. Basically, for each console sold, Microsoft makes $29 while Sony makes only $19.
The Xbox One comes with a microprocessor from Advanced Micro Devices that costs $110, DDR3 memory chips that go for $60 and the rest of the parts for a total of $332. The controller goes for $15, while the Kinect goes for $90, the external power supply goes for $25, and the box contents and the headset going for only $10.
The Xbox One is reported to make their profits mostly from game sales in the future. “That’s the way it happened with prior versions of both the Xbox and the Playstation,” IHS analyst Andrew Rassweiler told AllThingsD. “Microsoft could eventually eke out a break-even scenario. But they’d probably use it as an opportunity to cut the retail price, in hopes of selling more.”
So there you have it guys, Microsoft makes $10 more than Sony per console sold. Do you think this was an important thing that Microsoft focused on while making the Xbox One? Comment below!Further reading: Microsoft, PS4, Sony, Xbox One