An Xbox One Unit Costs $471 to Produce, a Sixth Goes Towards the Kinect

By Thomas Luke

November 27, 2013

The Xbox One’s parts cost approximately $471 to produce, around $75 of which goes towards the Kinect, research firm IHS has found.

The current retail price of the Xbox One is $499, a mere 20 dollars of profit. This gives evidence to the idea that one of the reasons for the price difference between the Xbox One and PlayStation 4 is the bundled camera. However, the most expensive component inside the Xbox One is actually its processor, which costs $110, around $10 more than the processor inside the PlayStation 4.

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