Microsoft loses $45 on every Xbox One Sold

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  1. Boards
  2. Xbox One
  3. Microsoft loses $45 on every Xbox One Sold
1 year ago#1
Microsoft loses $45 on every Xbox One sold.

$471 cost for Xbox One Console + $75 cost for Kinect = $544 - $499 Retail Price = $45

I thought people were saying Microsoft profited on every Xbox One sold? Guess they were wrong.
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http://www.joystiq.com/2013/11/26/teardown-suggests-xbox-one-manufacturing-cost-of-471/#continued

"The Xbox One Console costs Microsoft $471 to build, according to a hardware teardown and analysis by research firm IHS. IHS also cracked open the PlayStation 4 to find that Sony spends $381 building its latest home console. The bill of materials for the Xbox One amounts to $457, with the assembly and manufacturing of the system estimated at $14.

IHS says that the Xbox One's Kinect camera adds $75 to the total cost of the Xbox One, including assembly, $11 more expensive than the original Kinect's bill of materials and manufacturing costs."
1 year ago#2
Omg these people should totally sell their Xbox Ones and buy PS4s in light of this terrible news mirite TC?!
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I buy used games. Piss&MoanFaqs
1 year ago#3
Ya bu they make it up in marketing when the kinnect try's to sell you Doritos and Mountain Dew.

Win win
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His gaze burning on the edge of our dreams
1 year ago#4
Except the $471 includes the Kinect so....
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GT: xFrostxPhoenix
Now Playing: BF3, DC 2 Waiting for: MW3,Skyrim, ACR...Monster Hunter is the **** btw.
1 year ago#5
Based on the teardowns of both the PS4 and XB1 and given what the two consoles sell for, MS "makes" $10 more than Sony does on every console sold. Of course I'm sure that in reality they are both taking a bit of a loss though.
1 year ago#6
yiangaruuuga posted...
Except the $471 includes the Kinect so....

BigBOOtoYOU2 posted...
"The Xbox One Console costs Microsoft $471 to build, according to a hardware teardown and analysis by research firm IHS.....IHS says that the Xbox One's Kinect camera adds $75 to the total cost of the Xbox One, including assembly.


So....'nuff said.
1 year ago#7
i can assure you no company sells hardware at a loss
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1 year ago#8
This guy made the same topic yesterday, and said the same thing.

We proved to him that the price INCLUDES the Kinect.

He's a troll, or just an ignorant idiot. Topic flagged.
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"In my country, Battlefield hacks you" -Battlefield Friends
1 year ago#9
Lol the kinect only adds like $10 which is included in the original number. How cheap is Sony that they couldn't have tossed in that junk eye camera which would have only added a couple bucks to each PS4?
1 year ago#10
BigBOOtoYOU2 posted...
yiangaruuuga posted...
Except the $471 includes the Kinect so....

BigBOOtoYOU2 posted...
"The Xbox One Console costs Microsoft $471 to build, according to a hardware teardown and analysis by research firm IHS.....IHS says that the Xbox One's Kinect camera adds $75 to the total cost of the Xbox One, including assembly.


So....'nuff said.


Which means the console costs $395.
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