By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Microsoft Discussion - So...how much do you all estimate each Xbox360 costs to produce?

Sony is right under $400. How much do you think (lets say premium, it being the most comparable in price) cost Microsoft to have manufacture? (Not including shipping yada yada yada, just to have a finshed console ready to ship.)

I dont even know where to begin, but im sure one of our posters does .



Around the Network

I think the financial reports in a couple days will reveal that ...



Sorry for being stupid, but do they just reveal how many consoles they sold to retail, and then earnings? Or would people have to guess at games sold, XBL sales, all that stuff and guess at how much it would cost per console?



$250. This would be in line with the slight profitability last quarter.

No, the real value would not be revealed at earnings report time.



Ubuntu. Linux for human beings.

If you are interested in trying Ubuntu or Linux in general, PM me and I will answer your questions and help you install it if you wish.

$250 sounds about right to me as well. Anyone have any sources on costs? I know the PS3 has lots of info because it was a hotly discussed topic when it was released.



Around the Network

About a buck 50. That's why they kept breaking last year....but at the same time, you know how M$ wants your munniez. And boy, did they get it. All that profit.........



Here's iSuppli's breakdown of cost for both the PS3 and Xbox 360 in November 2006:

PS3 and Xbox 360: Breakdown of production costs (US$)

Item

PS3 (60GB version)

Xbox 360 (20GB hard drive version)

Motherboard, CPU, graphics processor, chipset, etc.

352

204

Optical disc drive/player

125

19.45

Hard disc drive

54

43

Power supply

37.50

25.50

Bluetooth, 802.11 b/g network modules

19.60

N/A

Other components

150.50

N/A

Chassis and related

61.75

25.25

Assembly

40

6.10

Total cost

840.35

323.30

Retail price

599

399


The falcon chipset released in 2007 is known to have reduced the cost of the system.  Assuming an extremely conservative 25% drop in costs since 2006 a premium cost Microsoft ~$242.78 to make.  It's extremely likely in my opinion that the actual cost of making a premium is between $200-$242.78.

The reason why the PS3's manufacturing price has dropped so much compared to the Xbox 360 in one year is because the Xbox 360 experienced such a drop in it's first year of production (it went from ~$715 to ~$323.30 to produce.



Well I'm hoping MS increased the quality of the console, so that might of offset some of the cost reductions.



Proud Member of GAIBoWS (Gamers Against Irrational Bans of Weezy & Squilliam)

                   

Legend11 said:

Here's iSuppli's breakdown of cost for both the PS3 and Xbox 360 in November 2006:

PS3 and Xbox 360: Breakdown of production costs (US$)

Item

PS3 (60GB version)

Xbox 360 (20GB hard drive version)

Motherboard, CPU, graphics processor, chipset, etc.

352

204

Optical disc drive/player

125

19.45

Hard disc drive

54

43

Power supply

37.50

25.50

Bluetooth, 802.11 b/g network modules

19.60

N/A

Other components

150.50

N/A

Chassis and related

61.75

25.25

Assembly

40

6.10

Total cost

840.35

323.30

Retail price

599

399


The falcon chipset released in 2007 is known to have reduced the cost of the system.  Assuming an extremely conservative 25% drop in costs since 2006 a premium cost Microsoft ~$242.78 to make.  It's extremely likely in my opinion that the actual cost of making a premium is between $200-$242.78.

The reason why the PS3's manufacturing price has dropped so much compared to the Xbox 360 in one year is because the Xbox 360 experienced such a drop in it's first year of production (it went from ~$715 to ~$323.30 to produce.

that total cost is misleading it should be total production cost

 



hoerenkind said:
Legend11 said:

Here's iSuppli's breakdown of cost for both the PS3 and Xbox 360 in November 2006:

PS3 and Xbox 360: Breakdown of production costs (US$)

Item

PS3 (60GB version)

Xbox 360 (20GB hard drive version)

Motherboard, CPU, graphics processor, chipset, etc.

352

204

Optical disc drive/player

125

19.45

Hard disc drive

54

43

Power supply

37.50

25.50

Bluetooth, 802.11 b/g network modules

19.60

N/A

Other components

150.50

N/A

Chassis and related

61.75

25.25

Assembly

40

6.10

Total cost

840.35

323.30

Retail price

599

399


The falcon chipset released in 2007 is known to have reduced the cost of the system.  Assuming an extremely conservative 25% drop in costs since 2006 a premium cost Microsoft ~$242.78 to make.  It's extremely likely in my opinion that the actual cost of making a premium is between $200-$242.78.

The reason why the PS3's manufacturing price has dropped so much compared to the Xbox 360 in one year is because the Xbox 360 experienced such a drop in it's first year of production (it went from ~$715 to ~$323.30 to produce.

that total cost is misleading it should be total production cost

 


That is the combined materials and manufacturing cost.

See for yourself, here's an even more indepth breakdown in which they state that it's the combined materals and manufacturing cost:

http://www.isuppli.com/news/default.asp?id=6919