Microsoft only makes $28 per Xbox One sold

Now that the Microsoft Xbox One is now available to all that wants to acquire one, IHS has estimated what it cost Microsoft to build each console.

As far as the results go, Microsoft isn’t making much for each Xbox One sold. IHS estimates that with parts and manufacturing of the device; the Xbox One Kinect and Xbox One Controller cost a total of $471 to manufacture, and this means that Microsoft only makes $28 from each unit sold.

Xbox One ConsoleThe Xbox One Kinect itself cost $75 to make, but the largest cost of the unit is its microprocessor from AMD. The processor combines a central processing unit, a graphic processor which cost a total of about $110 which costing the company $10 more than Sony pays for the AMD processor in the PlayStation 4.

However don’t feel sorry for either Sony or Microsoft, as they will be making ton of money once all customers who acquires a unit start playing online, because it now cost to play multi-player online. So they will be making back their money whichever way. Wait until you see the quarterly reports!

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