Microsoft Xbone vs PS4 production costs comparison

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According to a teardown the Xbone and the PS4 have nearly the same production price. The Xbone however costs 100 dollar more in stores, as a compensation Xbone buyers do get the Kinect sensor delivered.

The Xbone is even a little bit cheaper then the PlayStation 4, according to the TechInsights teardown. All parts together and the assembly of the Xbox One console cost approximately 331 dollar, while the PlayStation costs 332 dollar in total. The retail price of the Xbox One is 100 dollar more expensive compared to the PlayStation 4. The PS4 can be bought for 400 dollar, the Xbone costs 500 dollar.

The Xbone buyers do get a Kinect delivered for that price, which costs 39 dollar to produce. The price difference can be also explained by the higher R&D costs for the Xbox One. The Xbone controller research costed Microsoft a whopping 100 million dollar to develop. Microsoft wants to get a return on investment on their R&D costs, and they are trying to compensate this using the price for the console itself. Microsoft has expiremented with camera’s and screens on the controller and also a smell sensor. Those R&D idea’s have not made it into the final design of the controller. The only new feature is the vibration engine in the top buttons on the controller.

Although both devices have more or less the same production price, there are some differences between the both console. Sony is paying 62 dollar for their internal memory, while Microsoft pays only 39 dollars for their memory. This difference can be easily explained: the PS4 has 8GB DDR5 memory that runs on 5500MHz, while the Xbone has DDR3 memory that runs at 2133MHz.

Microsoft is paying a bit more for the processors 132 dollar while Sony pays 121 dollar. This is both the GPU as well as the CPU. Both consoles have the same CPU architecture, the AMD Jaguar architecture. The CPU speed of the PS4 is unknown, but according to rumors the CPU runs at 1.6GHz. The Xbone CPU is running at 1.75GHz.  The CPU of the Xbone is more powerful but the GPU of the PS4 is more powerful.

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