Microsoft isn't making a big profit on the next-gen console

Nov 26, 2013 17:16 GMT  ·  By

A brand new teardown analysis of the Xbox One next-gen console and its Kinect sensor shows that Microsoft spends about 471 USD or 347 EUR to create the two devices, meaning that it generates very little profit at least in North America, where it's sold for 499 USD.

The Xbox One surprised quite a lot of gamers when it received an official price of 499 USD/EUR, especially since its Arch rival, the PS4, costs just 399 USD/EUR.

Now, according to a teardown from IHS, via AllThingsD, it seems that the console alone costs 396 USD (292 EUR) to make, while the Kinect costs around 75 USD (55 EUR) to build.

This results in a total of 471 USD (347 EUR), meaning a small profit is recorded by Microsoft in the U.S. when selling the console.

This is similar to Sony's PS4, which costs $381 (€282) to make.