Microsoft says Xbox One price cuts are not out of desperation

[rolltide101x]

mutantsushi said:

rolltide101x said:

Yep just found a new source saying Kinect costs roughly 75$ to produce. If Xbox One does not take a price advantage at some point then it is pretty much hopeless for them. I guess Sony will have the price advantage all the way as the price of GDDR5 ram goes down and the fact that Sony is better at manipulating hardware than MS

Right, as I edited into that post after you saw it, the total subsidy for both consoles (including Kinect2) is practically equivalent:

PS4 costs $18< MSRP to produce, XBone costs $28< MSRP to produce (not including shipping/marketing, and both wholesale for < MSRP)

PS4 is more powerful because it's architecture design allowed a more powerful GPU at equivalent silicon budget.

(Sony did luck out with movement on GDDR memory prices)

Sony also now owns a chip factory they bought for cheap (the one producing for Wii U, in fact),

plus they probably are the largest GDDR purchaser (8GB/console), so should be getting the best volume discounts on GDDR.

Is that factory still making anything for the Wii U? I remember reading about that 4-6 months ago