Why is Xbox One more expensive than PS4?

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Anomaly0302

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Now we know why Xbox is more expensive. Lots of goodies inside.

Microsoft isn't sticking it to gamers by charging more for its Xbox One console than Sony does for PS4 - it really costs that much more for the parts.
The more expensive Xbox One's price is $471 (about £291, AU$516) at cost, according to the teardown analysts at iHS iSuppli.
Its bill of materials amounts to $457 (about £282, AU$501) and manufacturing is estimated to be $14 (about £9, AU$15).
That doesn't necessarily mean Microsoft is walking away with a profit on each console being sold for $499 (£429, AU$599), as retailers and distributors often take a cut.
"Just like the PlayStation 4, Microsoft initially will take a loss on each Xbox One sold when other expenses are added into the equation," noted iSuppli in a press release. They're likely to make up for the loss in game sales. - From Techradar.com
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Via: Tech Radar
 
Wow. I guess Microsoft really took a lot of costs to make the Xbox One. The Kinect is no doubt a part of the equation. I'm just wondering how much of a loss they take in each one, considering its price.
 
Well, when we had to have another Kinect sent out, they placed a $120 US hold on our CC until they get the broken one back from us. So the MSRP on a Kinect for the XB1 is $120?
 
I was about to say I think that the console is probably worth more. I mean the Xbox One probably cost more, because it has more to offer its players.
 
I don't think the price difference is all that of a downside since it's not much. I believe overall hardware costs are more for Xbox one than PS4 this is probably why.
 
I see. That's quite a lot for a cost. We don't even know the other costs they had to put, so yeah, there's a loss for every console sold. But what is the margin though? If it's bigger than Sony's, then Microsoft better have a plan on making sure they can earn a profit out of it.
 
Well, it's to be expected. With the Kinect added, of course the price had to up. What I want to know, like thedoodseven, is how much of a margin is the Xbox One on the loss. 'Cuz if it's big, they'd better make sure they have games up in the line. Or if they can promote the apps, then they can have people subscribe. We;'ll see.
 
I have to agree on that. Kinect sure made the price difference. But if you are going to look at the specs, Xbox one has more in it compared to PS4. I just hope that there are more games coming out. More titles, that way they can really beat PS4. Xbox one also has more features.
 
I can't say I believe this. Microsoft is a business, and like any business if they aren't making a profit on something they won't sell it anylonger. I find it extremely difficult to believe that Microsoft is knowingly going to take a bath on consoles and just hoping to make it up in game sales
 
Just give us the games Microsoft. If there's one thing they can do right now, it's to snag more games. Sure, there's apps, there's Xbox Live but without games, they can't quite make the profit they desire without it. PS4 has already hit it well with the gaming department 'cuz as early as before, they already got a lineup of games for gamers to play with. Xbox One needs stuff like that. Do that, and maybe they can hit that profit.
 
Not surprising for me. It was bound to be seen they'd be more expensive than Sony when it comes to the cost. If they're dependent on the software, they'd better give us more games to play with. C'mon, Microsoft, show us the love with some exclusives!
 
Wait, wasn't it already obvious that XOne was more expensive because it had more expensive hardware?

That said, seems to me that both PS4 and XBox One aren't very profitable per console.
 
Price doesn't matter for a hardcore player. If you have the money to buy a PS4, you can go the extra mile and buy the Xbox One, I will at least. Sure, there are other costs to take into consideration (games) but in the long run I always liked the Xbox better.
 
Getting the kinect in the box is probably the main reason why is more expensive I guess!
 
andrewt said:
Price doesn't matter for a hardcore player. If you have the money to buy a PS4, you can go the extra mile and buy the Xbox One, I will at least. Sure, there are other costs to take into consideration (games) but in the long run I always liked the Xbox better.
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For me, it's about the games and controller. Kinect is a nice bonus, but I'm looking forward to MS exclusives like Halo.

J
 
The exclusives are exactly why I bought the Xbox One first. Titanfall, Halo, Quantum Break, Sunset Overdrive, just to name a few.
 
Those exclusives just don't even appeal to me anymore. The PS4 has much better specs than the xbox one, I'm still trying to decide which one I want. The Microsoft DRM fiasco at the start was really off putting to me.
 
I personally have no issue with the DRM since I only buy new games, but I can see why some people were upset. As I've said before the features that would have been available with the DRM far out weighed the negatives, but that's just my opinion. The PS4 is stronger spec-wise but that's something that won't be fully realized for at least another 2 years and by then I'll own a PS4 along with my XB1. At launch MSFT has the better exclusives so as a launch purchase I think MSFT wins out. If you ask me again in a year or two my answer may be different.
 
elviahanf said:
Those exclusives just don't even appeal to me anymore. The PS4 has much better specs than the xbox one, I'm still trying to decide which one I want. The Microsoft DRM fiasco at the start was really off putting to me.
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I'm kinda confused... There is no more DRM associated with the Xbox One. And, both PS4 and XB1 did a reversal on this policy. The only difference, Sony did it before the industry criticized Microsoft. In fact, both companies had similar things associated with them but Sony opted to make a reversal before Microsoft (DRM, Camera pack-in, etc...).

Personally, both systems are great and I'm sure within a year, they are both going to have great games. To each his own.

J
 
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