Hasn't there already been a breakdown, and still the PS4 comes out cheaper vs X1 w/out Kinect?

Follow your advice?

It has been said many times by many people on the web that from the client's perspective the xb1 is not worth more than 300 - 350$, by me and many others.

It only highlight how Sony is making a great deal by selling the PS4 for 400$ (Sony looses a bit of money on each machines, until you buy 1 game or a year of PS+) while MS on the other hand insist on making a profit on every sale, despite the fact that their machine is underperforming in games.

+ the esram causes a serious bump in the price of the chip where the CPU and GPUs are.

According to this: Without Kinect, X1 would be $396, but that would probably come down due to less manufacturing costs

The eSRAM is in the main GPU/CPU chip. As for licensing costs probably what they save on removing gpu components probably pays for eSRAM. Of course I don't know that but the Xbox One effectively has a weaker gpu so surely costs less than that of the ps4.

Amazed at those kinect numbers. Only seemed like a small percentage of users had it here in the UK. I've seen them sold as cheap as £7.99 secondhand. No good for me though my living room is too small.

I'd bite at $299, probably.

I agree w You-  I think Don Matrick rammmed the whole kinect DRM Xbox 1 plan home and kept getting his way till the pre sales showed just how flawed his plan was-  then he was shown the door- the remaining execs have done a good job trying to turn around his disasterous plan but that guy did a ton of damage to the XBOX brand, koiled the momentum they had worked so hard to build and now they are fighting for their lives figurativly-  i bet soe of the older xbox people are just sick taht they squandered so much on Matricks plan-    The games market is much better w 3 strong consoles so i hope Sony as a compnay solidifies, that the Xbox turns it around enough to remain valuable to MSFT and Nintendo actually does something this century to overcome their many mistakes re the Wii U

he's making a massive number for baseless assumptions.  all you really need to know is according to his analysis:

xbox console = $300
kinect = $200

putting that into the context of kinect 1.0 sold at retail with a game for $150 and at a profit we already know the entire analysis if flawed.

Well, it is fallen...

Well, would you look at that, the OP analysis is completely flawed

Just to add to this, the costs of DDR3 whilst cheaper now, will go up when DDR4 becomes the norm.

There are some mistakes...

GDDR5 is not that expensive...
PS4's APU is cheaper than Xbone's APU by a good margin...

The cost of DDR3 will increase due the lower production while the GDDR5 will decrease due the massive production... the PS4 APU will be always cheaper unless MS can die-shrink faster than Sony but both are made by TSMC so both will die-shrink when TSMC do that.