I doubt the Xbox Series X is going to be any more expensive to manufacture. The cost difference between the SoC for the PS5 and XSX is not as much as people would think. These are high volume contracts so cost is already pretty low compared to consumer prices. MS is also going to be using these chips in their cloud gaming servers.
While we do not know the Physical hardware of the PS5, if they plan on going with the same type of design as their past consoles. Their cooling system is going to be the more expensive. XSX is using a overall pretty cheap cooling design. A large 130mm fan and a large vapor chamber cooler, these parts are not that expensive in the long run. Especially for mass market items. If the PS5 isn't a large box, expect a more complex system. As Sony stated they want the system to be quiet. The SSD cost of the PS5 is going to hurt them the most. Every channel needs its own memory chip. As well as higher cost of the PS5 controller.
Lets not forget that these consoles will no doubt be using about the same amount of power. Mark Carney said in his ps5 spec release that a 10% drop in GPU clock speeds results in a 27% power reduction. And what we know from RDNA1, if a 10% drop in clock speeds is effecting the power consumption that much. They are pushing the clock speed pretty high, out of the GPU Efficiency power curve.
Expect the Price of the XSX to Match the PS5 if not even under cut it slightly. MS isnt taking chances this round. The Cost to manufacture each consoles is about the same, and with sony using a more expensive controller. They will most likely take more of a hit with per sale cost. MS can easily take the hit on selling their console as a loss. They are one of the worlds most profitable companies. Sony as a company isn't in the same league. They will rely on brand awareness. But considering in America Xbox has about 40% of the market share, and still extremely competitive. MS taking back that market would be a big win. As that would be a big push for developers to go back to the xbox as lead development platform.
Even if the new consoles are $499, that isn't that much money. It's the cost of a mid range phone, and less then half of a monthly rent/mortgage payment. For many Americans that around 1/2 to 2/3 of your weekly take home pay. For a device that will entertain you for 6+ years. Pretty cheap investment.
Series X is almost certainly more expensive to manufacture, at least the machine itself. The cooling system alone is not cheap for a console. The spine of the machine has a cast piece of aluminum which then ends up in a CNC machine by the looks of it! Nothing like that has ever been seen before in a console. Heavy duty, expensive cooling design.
Also the SoC is definitely going to end up more expensive. It's not going to be hugely more expensive but it'll be more. The GPU is 40 percent larger in terms of die area.
The highest single component cost for consoles has traditionally been the SoC and that won't change this time around either.
The power consumption of Series X will also end up quite a bit higher, best part of 300 watts. Whereas Sony's machine won't likely be more than 250, probably less. Less cooling needed for Sony then, especially since their method has a completely known maximum TDP under any circumstances. Series X relies on a good old worst case scenario. Little bit costlier SoC, more expensive cooling, more expensive VRM and power supply design.
Needless to say although I expect it to be more expensive to manufacture it won't be more than say 15-20 percent.
The mitigating factor here is Sony have what looks to be a more expensive controller. They have spent their budget elsewhere.
Both of these machines are likely to come in around $500, probably even more. Which is a lot for console. Everyone that compares it to the cost of a phone misses the point, because they aren't phones, which many people consider essential technology in their lives. For leisure and work. Carried everywhere at all times, used constantly all day. These are games consoles. Essentially toys, bottom line.
Earlier adopters are always willing to pay whatever it takes, but average family Joe is the mass market consoles need to convince to expand the user base quickly.
For them a $500 console needs a lot of justification. PS3 showed how difficult it can be to shift consoles quickly when you price out the masses. I see what the economic situation is looking like for the next year, probably next few years and it doesn't bode well for $500 luxuries.
When you hear 20 million people in the U.S are now out of work compared to a month ago it should start to dawn what a difficult sell either of these consoles is going to be to the masses.
