Microsoft’s Xbox One costs roughly $471 per unit to produce, just $28 less than the $499 retail price of the gaming console, according to a preliminary teardown analysis.
The Xbox One carries a bill of materials (BOM) of $457, plus an additional $14 per unit in manufacturing costs, according to the teardown performed by analyst group IHS.
The profit margin on Xbox One, released worldwide 22 November, is similar to that of rival Sony’s PlayStation 4, which hit stores one week earlier. As we previously reported Sony is making $18 on every PS4 sold.
The preliminary IHS teardown of the PlayStation 4 found that it costs $18 less to produce than its $399 retail price, but when factoring in other costs like research and development, both Microsoft and Sony are losing money on every sale initially.