Xbox One per unit (Console) price.

Well that's good to hear vas, but it's not an answer to any of the questions I am asking.

Now, while this is an open forum, and anyone can post. I would like to have others besides myself searching out these questions and posting their findings. For 1 badge toting user claims one thing while another claims yet another. So I would like to simply
know which is correct. And if it is the one I am thinking. Then how is MS recouping such loses? It can't be the games alone.

:)

 

Help finding suppliers of Xbox products.

I'm only trying to find out what other people know. Perhaps they know something I've overlooked. I know prices are reduced for larger bulk orders but see my comment above about part of my strategy. Thank you for being honest though. Those are the things
I need to hear. Even with a higher price per unit, I can still afford to run this potential business until I can afford larger orders that will reduce my price per unit.

 

February NPD Thread - Please be kind to others and don't make work for mods

Really surprising that even with the recent price cuts and parity with the Holiday pricing, the PS4 is almost selling twice the units of the Xbox One in the US.

I think a lot of the parents went with the console with the cheaper price tag during the Holidays. My parents bought the Xbox One solely cause it was cheaper than the PS4 bundle.

 

They are definitely losing money on each console. So is Sony. But on purpose.

The goal isn't to sell consoles per se but to get the console into people's homes.

From there, Microsoft believes that the Entertainment and Services On Demand business model takes over. That's where the money is made.

 

^ But from where, and for what is that money coming from?

 

Xbox One costs 471$ to make. They are losing money with each console sale. It can not be refuted. However, Xbox as a brand has several other factors that help keep them in the "green". And even then they are not always in the green.

There last quarterly reveal showed that Xbox Live service for Xbox 360 alone brought in tons of revenue.

Minecraft merchandise also helps no doubt. Seeing as it is the 3rd best selling game of all time.

 

I could build a PC with similar specs fairly cheap. You know MS is getting bulk discount on parts. It would be much cheaper on me per unit if I was building a PC near these specs if I purchased bulk. So I would say just on the console they are doing fine.
Of course you then have the other costs outside of the console itself that add to it.

Saying that I expect MS to drop price again. They could and it would put them into more homes. I think that will be the holiday push. $50 off which puts them at $300. As has been said they are pushing for their services to be front and center. The best
way to do that is to get into as many homes as possible. So $300 for the fall with some sales hitting $250. Make the money up on the back side with Live and other services.

 

Hi-ya there Doc. Sure, that was what pops up 1st in my search. But that's nothing more than a guess.

So if it. "can not be refuted" then surely there is an Official pie chart somewhere which shows down to the penny, and more importantly. From where they are recouping their loses.

 

"Xbox One costs 471$ to make"

Wow. I think I remember reading about that and that included the Kinect sensor as well. Something like at least $75-$80 just for that. I saw a couple estimates back in 2013 that showed something like $320 or $330 without Kinect and stuff. But of course
Kinect was bundled at the time. And this was not taking into account how much of a discount you can get by purchasing very large quantity orders. No way of knowing the exact deal MS made but I can guarantee it was for less than I could get because they are
buying more.

 

Publishers have to pay a license fee to have their game on the console. Live Gold makes a shed load of money.

Isn't Nintendo the only one not to sell their consoles at a loss?

 

Doc is Right.

$471. But that was including a $75 Kinect.

Here's a breakdown in a Teardown of the One and PS4 by IHS Technology.

technology.ihs.com/.../microsoft-xbox-one-hardware-cost-comes-in-below-retail-price-ihs-teardown-reveals

 

Wasn't it reported that Kinect cost more to make than the actual X1 when it released?

I honestly don't think the X1 on its own would cost ms a lot to mass produce. Obviously I don't no for sure, but there isn't exactly any futuristic tech in the X1 that would cost much to produce.

 

ElectroFlying, I doubt you will find anything official. I doubt MS or the companies they deal with want the details of the deal they made being public. Best thing you can hope for is this:

1. Find the equivalent part, or close, on PC.

2. Look up some bulk pricing.

3. Get an idea of what it would cost you per similar unit

4. Then guess at what discount MS is getting

As for 4. I know first hand of this case. So it can be hard to get completely correct price. I am sure some estimates exist. Thing is they make these deals over the long run. And costs do go down as well which is why we see hardware prices fall. But
even back in 2013 the cost for parts were not outrageous.

 

Yes Electro, Xbox Live. And what Vaynel said as well regarding license fees.

Several 2nd and 3rd party companies did a tear down of the consoles and verified how much Xbox One costs to make.

And Kinect costs 80$ to make. So...Subtract 80$ for Kinect 2.0.

And currently it seems the P*4 is making $ with each sold

 

But that's nothing more than a comparison chart/article for best guess Doc. Nothing Official about "best guesses."