Microsoft loses $45 on every Xbox One Sold

#1BigBOOtoYOU2Posted 11/28/2013 6:49:57 AM
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."
#2bossk5Posted 11/28/2013 6:51:55 AM
Omg these people should totally sell their Xbox Ones and buy PS4s in light of this terrible news mirite TC?!
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#3username1289Posted 11/28/2013 6:53:04 AM
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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#4yiangaruuugaPosted 11/28/2013 6:54:34 AM
Except the $471 includes the Kinect so....
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#5assassin10133Posted 11/28/2013 7:03:36 AM
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.
#6BigBOOtoYOU2(Topic Creator)Posted 11/28/2013 7:08:12 AM
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.
#7xcmon3yx2Posted 11/28/2013 7:15:13 AM
i can assure you no company sells hardware at a loss
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#8nickr2d2Posted 11/28/2013 7:15:45 AM
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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#96speednissanPosted 11/28/2013 7:23:29 AM
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?
#10Bac0n01Posted 11/28/2013 7:45:43 AM
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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