I’d say this would be fairly accurate based on what I’ve heard. But still all unconfirmed ofc.

I previously estimated the build cost of Series X would be higher at over $460 minimum and still expect that to be the case.

https://twitter.com/zhugeex/status/1208008465563750400?s=21 https://twitter.com/technology/status/1228170578760044546
Note. Build cost is not the retail price. As the article states, a $450 build cost would probably result in a retail price close to $500.

I think at this point it’s unrealistic to assume we’ll get a high end console at $399 like last gen.
The PS4 was sold at a loss on day 1. Its total build cost was $381, but the additional costs involved such as retailer margin etc... pushed the total cost for Sony over $399. Took a few months for them to make a profit on that price.

https://twitter.com/xconjo/status/1228178809649713152?s=21 https://twitter.com/xConjo/status/1228178809649713152
Here are the basics.

Series X build cost likely higher than PS5 (as of now), but not significantly so.
Pricing will likely be similar to or higher than build cost for both devices.
However, both manufacturers could be willing to take a loss day one to price more competitively.
More than last gen given both Sony and MS have been able to offset the traditional cyclical nature of console profits/losses by generating a constant stream of revenue via subscriptions and add on content.

So they can experiment with pricing somewhat.

https://twitter.com/soulomaeda/status/1228184109844848642?s=21 https://twitter.com/soulomaeda/status/1228184109844848642
Also I want to clarify one point from the original tweet. I’m not saying that XSX build cost is $460.

I estimated that the build cost would be in the $460 minimum to $520 maximum range based on current component costs.

To simplify it, higher than the PS5 build cost somewhat.
Final point.

Let's not forget the big wildcard for Microsoft here, that they have multiple entry points:

- High end next gen console (Series X)
- Low/Mid end next gen console
- Buy/Build your own low/mid/high end PC

vs

- High end next gen console only (PS5)
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