Intrinsic on 17 May 2014
| jonathanalis said: they said kinect cost was almost half of XBO total cost. So, selling by 400$ a kinect free XBO must be a good deal for them, they would profit more per console sold. They was also profiting more with kinect xbo than sony with ps4. As they are profiting there is more room to drop the price. So i think it was the right decision. if it dont sell well, they can cut the price even more. |
No, you're wrong.
A teardown shows that PS4
- PS4: Total Console cost $339/ Total system cost (including controller) $357
- Reatils for $399 so makes a profit of $43 (before subtracting what the retailer takes)
Then for XB1
- XB1: Total console cost $331/ Total system cost (including kinect and controller) $388
- Retails for $499 so makes a profit of $112 (before retailer)
As you can see the XB1 does cost less to make than a PS4, however kinect is being sold at a premium (for whatever reason) but also gives MS a window to drop prices, thats why the totanfall bundle would not affect them. However, dropping to $399 while still making a profit means that MS will be making less money than sony is with the PS4.
As it stands now, sony is in a better position to cut the price of their PS4 than is MS. Though MS can easily match any price point sony goes to regardless. By this fall I would expect to see soft price drops for both consoles aka bundles and/or systems with bigger HDDs. Then proper $50-$100 price drops around E3 next year.
