Xbox One Costs $90 More to Build Than PS4, Teardown Shows ($75 Kinect 2)

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d21lewis said:
Nice. So are both Sony and Microsoft profiting from every console sold or are they still selling at a loss in hopes of making the money back on peripherals, games, and subscriptions?

Adding retailer margin and the small distribution costs, I would say a small loss. Esp for Sony as $382 is mighty close to the RRP. Of course US price is cheapest in the world, so in every other market (given distribution costs are tiny regardless of destination) they will probably be making a small profit. So it's not the selling of other stuff that's making them money, it's the rest of the world subsidising the US market.

NZRRP for PS4 is $648 - 15% tax = $563 = US$461. Take off $10 for sundries and $20 for retailer margin and we have Sony receiving perhaps $430 from customers here for a box that costs them $382 to make. Not a bad margin. 99% confident that they aren't making a loss out of NZ customers on hardware.

Xb one is $748 - 15% tax = $650 = US$532 take off the same $30 and MS is getting maybe $502 for a box that's costing them $471 to make. Not quite as big a margin as Sony, but still pretty good. Also 99% confident that MS isn't making a hardware loss out of NZ customers.

Same would apply to Aussie I would think.