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Microsoft Squeezes Little Profit Out Of Each Xbox One

wochit technology
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November 26, 2013 AT 5:30 AM
In a peek at Microsoft's new gaming console shared with AllThingsD, research firm IHS found that the manufacturing cost of the Xbox One is just $28 higher than the retail price, leaving Microsoft with little profit to take home. Microsoft sells each Xbox One for $499 after spending $471 to build it. The cost to build an Xbox One is $90 more than the $381 Sony spends on its PlayStation 4, which costs consumers $399. However, that leaves Sony with an $18 profit on each unit.