All Things D did a followup to their PS4 teardown by tearing down an Xbox One. According to them. the Xbox One costs about $471 to make, about ninety dollars more than the PS4. The Xbox One retails at $499, which means Microsoft only makes $28 on every single Xbox One sale. Once again, they aren't looking to profit on their console, just the games that are sold afterward.
Where does all this cost come from? Well, $75 of the construction fees lie in the Kinect. So, yes, when people said all the extra cost in the Xbox One's price was coming from the mandatory Kinect, they were pretty much right. $110 comes from the console's GPU/CPU hybrid. RAM adds another $60 to the price of the unit.
Microsoft, like Sony, is selling it's controllers at a huge markup. The controller itself costs about $15 to make, well under the asking price of the controller itslef. If you don't include the construction price of the controller or the Kinect, the Xbox One can be build on $332, nearly 200 dollars less than the asking price of the system.
Former Contributing Writer