Why the Scorpio will sell for no more than $399 (if its 6tflops).

[VAMatt]

 

barneystinson69 said:

Exactly. The RX 480 is only $199, and it is capable of 6Tflops with a slight overclock. You can expect that to fall to $149 next year, and plus you need to take into account discounts as well. People here are overestimating the cost of the Scorpio given the specs we've got.

You also need to remember that a PC's Graphics card is for the *entire* graphics card from Ram, to power delivery to PCB... For a chip in a console, it's a cost that is consolidated.

It is also important to remember that MS is not paying retail price for components.  I'm just guessing here, but I'd bet that MS pays no more than 50% of the retail price for most console components, probably far less in some cases.  Further, in the process of designing these systems, MS (or Sony or Ninty) certainly works with the component manufacturers to figure out where the best value can be found.  Prices we see at retail have little to do with the prices console designers are seeing when selecting components.