Xbox One S teardown – here’s how much Microsoft is making
The new Xbox One S console is now on sale, at a significantly higher premium than the 2013 original. However, by adding additional power, more storage, an IR blaster and a 4K Blu-ray player it also cost Microsoft a bit more to make.
A teardown of the new console found the 2TB Xbox One S console cost Microsoft an estimated $324 (around £248) to build, while it retails for $399/£349.
That means, according to IHR Markit (via WinBeta), Microsoft has a $75 margin on the console, although you’d have to assume close to all of that is consumed by distribution and the retailer’s cut.
Related: Xbox One S vs Xbox One: Should you buy one?
In better news for Microsoft the new console only cost Microsoft an extra $24 to build, with IHS Markit claiming the 1st-gen model cost $300 to manufacture.
Despite the upgraded innards, Microsoft has been able to make savings elsewhere thanks to the reduced power consumption and smaller casing for the new S console.
Have you snapped up an Xbox One S yet? Or are you waiting for Project Scorpio in 2017? Share your thoughts in the comments section below.