BlueFalcon said:
I think you confuse cost to MS/Sony and retail price to avg. consumers like us. AMD and NV sell the GPU, thermal components, power delivery components, PCB, and then AIBs add on additional costs such as warranty support, marketing, packaging costs, transportation costs, technical support, sales costs, etc. Then AIBs and retailers tack on additional profit margins for themselves. The end result is we have a graphics card that sells for $450-500 in retail channels that actually can be purchased / licensed by MS and Sony directly from AMD for ~$200. Since MS/Sony don't even need the PCB as the chips and memory/power delivery will be soldered to the console's motherboard, the costs are actually slightly less. |
No, I indicated that the bells and whistles of a top-end GPU aren't conducive to a competitive console price. Even taking the unlikely markup you've described, $200 for GPU doesn't leave much budget for the rest of the system and profit, and I don't think anyone's hoping to ship a $599 console again. Nevertheless, your breakdown doesn't include the key component: the price of GDDR5.
