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Xbox One costs $90 more than PS4 to make

Microsoft close to break-even at launch.

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It seems both Microsoft and Sony have taken an approach that will see them make a profit on next-gen hardware rather soon.

AllThingsD have talked to research firm IHS who have ripped both the PS4 and Xbox One apart to see how much the components of each console costs. IHS puts the components of Xbox One at $471 (PS4 landed at $381) - and it seems like the Kinect camera ($75) is the major differential. The consoles retail at $399 (PS4) and $499 (Xbox One) in the US, but naturally shipment costs, and profit margins for retailers and marketing also factor into how profitable the hardware is. Still it should be noted that when you launch this close to break-even, it figures that once production has been streamlined and components fall in price, profits will follow soon after.

The Xbox One controller was estimated to cost $15, while the single most expensive component in Xbox One was said to be the combined GPU and CPU chip from AMD coming in at $110 ($10 more than what the corresponding component in PS4 was estimated at).

Naturally these are all estimation and assumptions, but it gives us an idea of what next-gen consoles cost to produce.

Xbox One costs  more than PS4 to make


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