http://allthingsd.com/20131126/microsofts-xbox-one-cost-90-more-to-build-than-sonys-ps4-teardown-shows/

Breakdown comparison for those interested.

PS4

Console: $348
- CPU/GPU: $100
- RAM: $88
- Power Supply: $20
- Optical Drive: $28
- Hard Drive: $37
- Other: $75

Controller: $18
Box Contents: $6
Assembly: $9

Total: $382


Xbox One

Console: $357
- CPU/GPU: $110
- RAM: $60
- Power Supply: $25
- Optical Drive: $28
- Hard Drive: $37
- Other: $98

Controller: $15
Kinect: $75
Box Contents: $10
Assembly: $14

Total: $471

I am not surprised. Even if we deduct kinect Xbox One costs more. Sony's expertise in the hardware is expected.

The PS4 GPU is significantly more powerful and the ram is also much faster, yet they are paying more for less cause of the esram modifications, horrible decisions made, at least it show they were not trying to make a cheap console.

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?

http://www.gamesindustry.biz/articles/2013-07-15-kinect-costs-almost-as-much-as-xbox-one-to-make-says-dev

So can we label the guy who made the claim "a phony"? Cause he lied. He lied to all of us. And I am super offended for being duped in such a way.

While these are some intelligent GUESSES, they are just that, guesses. I think there should be a +/- $50 clause added to each one lol.

Tear down's have to be some of the most stupid things on the internet when they try to price components. It's so unbelievably moronic. We have no idea what contracts have been struck with Microsoft and Sony with their suppliers of components and assembly (foxconn). We do not know their R&D or marketing costs. We do not have info on the tax they are paying etc. We don't know the margins they are allowing. We do not have their transportation and shipping costs etc.

If at all accurate, those controller costs upset me.

As someone who works in the industry selling business to business, I have to agree with you to a certain extent.

Wow that's interesting. So even without the kinect, the Xbox One still costs more to make. Its strange that the Xbox One is less powerful as well then.