Hardware Value of Xbox One and PS4 Revealed

Research firm IHS has revealed that the combined cost of parts and manufacturing for Microsoft's console is $471 compared to PlayStation 4's $381.

The Xbox One contains a standard $75 Kinect camera, with the single most expensive item being the $110 AMD chip which is $10 more than the PS4's AMD chip. The IHS analyst Andrew Rassweil said "they're both very powerful chips, you might call them a gaming console on a chip."

The PS4's high end GDDR5 memory chips are better than Xbox One's DDR3 memory chips from SK Hynix. The Xbox One's DDR3 is about $60, around $28 less than PS4's GDDR5. Xbox One's all new controller which features Wi-Fi and Bluetooth components from Marvel Technology cost about $15 and sell for $60.

Unlike the PS4, the Xbox One features an external power supply, which costs around $25 to make. Xbox One's headset costs $10 to make and $14 to assemble.

Texas Instruments is a major parts supplier for the Xbox One, with four parts for the console and two for the Kinect.