This Week In The Business: The Cost Of An Xbox One

This Week In The Business: The Cost Of An Xbox One

What’s happened in the business of video games this past week …

STAT | $US471 — Amount it costs Microsoft to manufacture each Xbox One, according to research firm IHS; this compares to a manufacturing cost of $US381 for the PS4, which means neither device makes a profit at retail considering discounts and marketing costs.

QUOTE | “The digital version of a product should be a hell of a lot less expensive. Steam does it right. It’s cheaper and at times phenomenally cheaper.” — Sony fan Ray Barrett, waiting in London for the PS4 launch, on why digital versions of games should be cheaper.

QUOTE | “We need an audience who is motivated enough to find stuff. But it seems like people just want to sit there and have stuff shoved in their face.” — Metanet’s Raigan Burns, on the challenges facing indie developers.

STAT | Over $US20 million — Amount that charity Child’s Play has raised to help sick children and their families through play in its 10-year history; according to Child’s Play, the gaming community has raised over $US2.5 million in 2013 alone.

QUOTE | “We can’t wait until everything is perfect to start.” — Square Enix’s Latin American subsidiary manager Igor Inocima, on the publisher’s aggressive approach to the “exploding” Latin American market.

QUOTE | “We’ve changed every year over the past 10 years.” — Co-founder Andrew Eades of developer Relentless, on the company’s evolution from exclusively Sony titles to working with Hasbro and Microsoft.

QUOTE | “‘I would not expect many changes to the game as a result of my departure.” — Greg Street, lead systems designer on World of Warcraft, on his resignation from Blizzard.

STAT | $US250 million — Amount that Sony is looking to cut from expenses in its entertainment business; this includes shifting movie investment to TV networks and reducing the output of Columbia Pictures.

QUOTE | “The blunt reality is that easier production equals more creative freedom and opportunity.” — Chinese Room creative director Dan Pinchbeck, talking with other indies about what next-gen consoles mean to them.

QUOTE | “In the years to come, the big properties at E3, the $US100 million properties, they will have started off in the indie space.” — Industry veteran Lorne Lanning, along with others, on the future of next-gen games.

This Week in the Business courtesy of GamesIndustry International
Image by deepblue-photographer [Shutterstock]


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