How Much Does The XboxOne Really Cost?

A teardown of the Xbox One – console, Kinect, and controller – reveals an overall manufacturing cost of $471 (£289) – approximately $90 (£55) more than Sony's PlayStation 4.
The hardware breakdown of both consoles was done by research firm IHS, with the results being exclusively revealed to AllThingsD.

The main source of the price disparity is the Kinect sensor, which costs at least $75 to make and comes included with the Xbox One. The PlayStation camera is not bundled with the PS4.

The "biggest cost driver", though, according to Andrew Rassweiler (the IHS analyst who oversaw the teardown, is AMD's microprocessor. Similar to the one found inside the PS4, the chip combines a CPU and a graphics-processing unit. Its cost was estimated at $110, around $10 more than the AMD chip in the PS4, and was highlighted as the most expensive component in the box.

Memory also contributed to the price difference between the two consoles. The Xbox One contains older, more commonly used chips – DDR3 memory – compared to the PS4's newer GDDR5 memory. The Xbox One's memory cost around $60 – that's $28 less than what's in the PS4.

Here's the full breakdown:

Console: $332
Kinect: $75
Controller: $15
Power brick: $25
Headset: $10
Production: $14