So...how much do you all estimate each Xbox360 costs to produce?

[Legend11]

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