Andre Yoskowitz
26 Nov 2013 22:04
According to research firm IHS, Microsoft, just like its rival Sony and its Playstation 4, is making a very tiny profit on each unit sold of the new Xbox One.
The Xbox One, which costs $499 to consumers, costs $471 to build, not including R&D and advertising costs which could certainly add up to $20 or more per unit.
Sony, which sells its PS4 for $399, spends $381 to build the console.
Microsoft's added costs come mainly via the Kinect motion control sensor, which costs $75 and the AMD CPU/GPU at $110.
Both console makers lost significant money for their PS3 and Xbox 360 consoles, respectively, with Sony losing as much as $300 per unit for over a year. While they may not be making more than a few pennies this time around, the figures certainly seem better than a loss.