PS4 VS Xbox One: Breakdown Shows PlayStation 4 Is Cheaper To Build

PS4 vs Xbox One breakdown: Why the price difference, exactly?

As previously reported by The Inquisitr, Microsoft has claimed they are not price-gouging gamers on the Xbox One, and that it’s worth the extra cash.

I previously discussed the fact that a PS4 VS Xbox One breakdown showed similar AMD hardware, they both have a 1.6 GHz 8-core Jaguar CPU, 800 MHz GPU, 8 GB of memory, a 500GB HDD,Blu-ray drive, WiFi, 4K or Ultra HD HDMI, and USB 3.0. So at that level, it appeared there was no real good reason for the difference in price. Microsoft President Don Mattrick defended the high price tag:

“It’s a lower number than some of the analysts had forecasted. We’re over-delivering value against other choices I think consumers can get. Any modern product these days, you look at it [and] $499 isn’t a ridiculous price point. We’re delivering thousands of dollars of value to people, so I think they’re going to love it when they use it.”

Of course, Microsoft also has to sell the Xbox to people who don’t speak Geek. Representative for the company like to point out, that, like their games are just better man:

“I think we do more. I think our games are better. I think as people start to experience Kinect and see what it can do using voice, I think that’s better. I think the ability to have an all-in-one system where you can plug in the TV, that’s better. I think we’ll have a better online service. I just believe that we’re going to have a better system.”

This is, of course, in reference to the fact that with the Xbox you get the Kinect 2.0 motion sensor camera system included, whereas PS4’s camera bundle costs an extra $100, brining both systems even. So what is it exactly that justifies the Xbox One being $100 more than the PS4?

Researchers from IHS tore both consoles apart to answer the question once and for all on the Xbox One breakdown. The result? Turns out, Xbox actually is more expensive to build, due to extra embedded high speed memory. So while the components for the PS4 might be more complex, the Xbox One does have significantly more high speed memory, which is justifiably a good reason for the higher price tag. Xbox costs $90 more to build, due to the more expensive components.

It might come as a surprise to most gamers to realize that at best, Microsoft will make $28 in profit per console, and Sony $18 per console. Yes, manufacturing costs will go down, but both companies are known for also lowering their prices for the systems in the years after their release.

So after getting the full PS4 vs Xbox One breakdown, which one are you more interested in?

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