Production of the new Xbox console will cost $ 500


Daniel Ahmad, Niko Partners Senior Analyst, tweeted about the cost of parts and the production of next-generation consoles.

He has no idea how the PS5 and Xbox Series X can cost less than $ 400, given the specs. Only CPU / GPU, GDDR6 memory, and NVMe SSDs exceed half that price. This is either a loss or a price well above $ 400.

This is not the first time to sell at a loss to manufacturers. For example, PS4 – at the initial stage it was sold cheaper than cost, but a few months after the launch in early 2014, Sony began to make a profit.

Ahmad recalls that at the launch of the PS3 it sold for $ 500, and the manufacturer cost $ 800. But it is unlikely that the situation will happen again. From his point of view, the difference is compensated by the sale of games, services and subscriptions: PS Plus, Xbox Live, Xbox Game Pass. However, here Microsoft is in a better position, as it is most likely going to release two types of consoles, cheap and expensive. With Sony, the situation is not clear.

According to Ahmad, parts and production of the Xbox Series X can cost from $ 460 to $ 520 and this is not the price of the store. He admits that this is too hasty an assessment and in a year, when new consoles go on sale, a lot can change.