Production costs: PS3 and 360 Elite comparison

Good call on this one, David. Bullspit all the way.

If they can't even nail the retail cost of the elite, I'm going to have to dismiss this as bunk.... why did you write about bunk?

I wrote about it for three reasons.
1) The attempted comparison is interesting regardless
2) The Joystiq lead had it listed as a newsworthy story
3) I get the same money writing about (interesting) bunk as I do about something legitimate and interesting.

excellent reasons, thanks for clarifying.

Not totally accurate since the Xbox360 doesn't have a built in Bluetooth module, BUT do have a wireless module for gamepads and voice which is simular to Bluetooth (the protocol is just proprietary) ...

The concept is interesting - I'd love to see it done in a more trustworthy setting.

From a business standpoint, this console cycle is extremely interesting - all three console manufacturers have taken very different approaches to this cycle, which, I believe, is a first. I'd actually be interested to see a cost breakdown of all three new consoles - we already know that Nintendo is the only one making money on the hardware end at this point. It will be interesting to see how the different strategies play out over the coming years.

2points
$43 for a 120 GB HDD... interesting.

Ever bought a combo tv/videotape or tv/DVD set? Sucks when one part goes bad doesn't it...feel the same way about all the "stuff" they've packed into the PS3...not that the 360 is unbreakable. lol.

they made a botch, it's definitely for the premium, i can tell just by looking at the HD and retail price. the HD for the elite probably costs about 85-90 when bought in bulk, maybe less by about 10-15 dollars. isuppli rarely does mess ups like this though, but i suppose it's just one of those times

Either way, the obvious statement is whoa look how much it costs to make a PS3, but I think that the more disappointing thing for 360 owners is that Microsoft's approach to the console market this round is, "if you want it, buy it separately." Completely different from Sony's, "everything is in the box (except an HDMI cable)."

However, if Microsoft is dead set on forcing you to buy a WiFi adapter, HDDVD Drive, Charge Cable, Larger HDD, Remote Control, etc. These things should be priced to move. The wifi adapter should cost at MAXIMUM 49.99. The HDDVD should be priced at 149, and the HDD should not be more than 119 for the 120 and 49.99 (or less) for the 20gb.

The 360 has a lot of hardcore gamers and we aren't stupid. We know that it doesn't cost $100 to make a wifi adapter.

I thought the 360 was being sold at a loss? Here is seems like MS is actually profiting from them. I don't think this is completely accurate, but I'm sure a few bits and pieces are. I would really like to see this done professionally and with full disclosure from MS and Sony... but that'll never happen. Interesting none the less. Good find Knuckles.

The Xbox 360 wireless networking adapter also includes 802.11 a which would increase the cost of the component (to the $99 comment)

#9 you're aready stupid for getting a 360. microsoft dont care about their gamer they just want the green, they didnt include alot of the their stuff as standard not for u to have a choice but to sqeeze every last peny out of u..... And Lord behold they give u the 360 elite which is not much of a difference which didnt cost them shit and selling u for $480.

guys, Im not gonna debate this whole chart on accurecy or not, but 2 things I want to point out.

First, is the hard drive cost seems about accurate. These companies are buying hard drives in bulk (in the millions). That gives them a much cheaper price then us would pay at retail. And a 120GB notebook SATA drive can be found for $80 at retail (OEM). To assume the company pays $4x dollars for it seems like a good assesment to me. And why would it cost less then the 60gb drive you ask? Well that 60gb drive is a standard 3.5 inch drive. 60gb is actually older technology. Most stores sell a minimum of 160GB today. For sony to get 60gb drives en mass, with there being little demand for them, theyw ould no doubt cost more. The rumours of sony upgrading from 60gb drives to 80gb drives in the ps3 always struck me as a method for them to save more money, not help the fans out. As a 80gb drive is sure to be cheaper then a 60gb drive (3.5 inch)

Another thing I want to point out is the wireless cost. While Im not sure if sony is really paying only $19 for both b/g and bluetooth, There is no way Microsoft is paying more then $40 for an a/b/g card, which they charge us $130 CAD retail for. We are getting ripped off a whole bunch on the wireless card.

I love the xbox 360 as much as any fanboy here, but it takes true ignorance to believe that your paying a fair price for xbox 360 hardware and accessories.

MS has not been selling the 360 at a loss for sometime now. The only company "losing its shirt" on every unit sold is Sony.

@9. Posted at 1:49PM on May 7th 2007 by Louis

I think this the best post I have seen by any one with a break down in the difference in the consoles(without fanboyism). no bs. no bias. I agree 100% with Louis, If you want all the same features as the PS3 Microsoft is Milking us with high prices. On the other hand PS3 give ou everything and they take the high cost hit as much as they can but the price is still more, but not as much as it could be if bought seperately.

This has to be the "premium" not elite.

$20 for the wifi/bluetooth? Color me skeptical.

"Well that 60gb drive is a standard 3.5 inch drive. 60gb is actually older technology. "

No, that 60gb drive is the same form factor. 2.5" sata.

ZING!!

@ #14, keep in mind this doesn't include cables, controller and a headset, and that there's also the core package, but yeah, the margin is slimming. plus it's rumored that the 65nm 360's are finally going to be out around holiday season which means they will almost definitely be profitable to some extent.

I seem to remember Sony saying their console cost around $800 or that they sold their console at a loss of $200 so this is not unreasonable, but that Microsoft is actually making money on their console; that I do not believe.

I think this is probably the cost for the premium, not the elite.
Simply since the 360 uses a 2.5" drive, which is typically more costly than a 3.5er.
$40 for a 20GB 2.5" drive sounds right, i doubt even with a bulk discount you could get much better than $60 or so, since when you find a cheap retail drive they arn't the typical 100% mark-up anymore.

Also, when they say "selling for a loss" and "Selling for profit" are actually totally different things. Sony is selling the PS3 for a loss, they lose money every unit they sell.
MS is not losing money on every sale, but they still need to recoup original R&D, external failure/Warrenty repairs, and all that marketing. While i disagree with MS price gouging(common, nearly $100 profit off of the 120GB HD?) it is a good way to recoup those losses and become profitable along side with their reduced production costs.

The sooner they recoup costs, the sooner they pass that savings on to the consumer, and thats just how business works. You're patient you get the savings, you pay to be first.

somebody was smoking a little too much weed to come out with this "accurate chart"
hes probably looking for another job
Since when does the elite have 20GB hard drive?

What the..? Nobody read the "Read" link? it clearly shows in that link that it's the 20GB Premium, not the Elite.

I guess the pretty much elitiminates many of the comments posted here.

OMG I'm sick of reading what it has and what it can do. Jesus does it really matter? I'm not gonna fork over 600 bucks for something that people say "It's gonna be good one day, just wait and see". Thats not what I'm paying for. I'm not paying for an assumtion.. Jesus.. I'll stick with my 360. My Roomate was lucky to get his PS3 as a gift. Even with it, and he is a die hard sony fan, he is not happy with it. All this Crap about sales and hardware and statistics, whatever you wanna call it, Is that why you bought one? Really? Instead of playing it, your on here proud of statistics and hardware. Checkin the sales figures everyday to validate you purchase. Hey, People get screwd. I'm not paying my money for something that isnt, but promises it will be one day, worth the money..