System Costs

One thing that a surprising number of people seem to overlook is the idea that consoles are built to take a loss on the hardware itself.  If the Xbox 360 retails for $299, it may very well cost Microsoft $399, or even more.  This has been the way consoles have been manufactured for quite some time now, and it has not changed with the latest generation of consoles. 

However, given the very high system costs of the original Xbox, it isn’t surprising to see that Microsoft is quite concerned with keeping costs down to a minimum this time around.  There are a number of decisions that Microsoft has made in order to limit their loss on the 360 hardware.

First and foremost, Microsoft owns the IP in the Xbox 360 and thus they can handle manufacturing on their own without having to re-negotiate contracts with ATI or IBM.  It remains to be seen how much of a money saver this will be for Microsoft, but it does present itself as a departure from the way things were done the first time around for the folks at Redmond. 

Assuming Xenon is nothing more than 3 PPEs put on the same die coupled with twice the L2 cache, it looks like Xenon is a smaller chip than Cell. 

The Xenos GPU features a higher transistor count than the RSX (332M vs. 300.4M), but a lower clock speed. 

Microsoft didn’t skimp much on the CPU or GPU hardware, which isn’t surprising, but it is in the auxiliary hardware that the console ends up being cheaper in.  The best way to understand the areas that Microsoft didn’t spend money in, is to look at the areas that Sony did spend money in. 

The Xbox 360 is using a tried and true 12X dual layer DVD drive, probably very similar to what you can buy for the PC today.  A very popular drive format with mass produced internals is a sure fire way to keep costs down.  Sony’s solution?  A very expensive, not yet in production, Blu-ray drive.  As we mentioned earlier, the first Blu-ray players are expected to retail for more than $500.  The PlayStation 3 isn’t going to be successful as a $800 console, so we’d expect its MSRP to be less than $500, meaning that Sony will have to absorb a lot of the cost (initially) of including a Blu-ray player, until production picks up. 

Both the Xbox 360 and the PS3 feature wireless controller support, although Sony supports a maximum of 7 Bluetooth controllers compared to Microsoft’s 4 2.4GHz RF controllers. 

The PS3 also ships with built in 802.11b/g and three Gigabit Ethernet ports so the system can act as a Gigabit router right out of the box.  Adding wireless support isn’t a huge deal, but the physical layer as well as the antenna do drive costs up a bit.  The same goes for getting controllers to drive the three GigE ports on the unit. 

Sony also offers built in support for more USB 2.0 ports (6 vs 4), media card slots (Memory Stick, SD and Compact Flash) where the 360 has none and two HDMI outputs where the 360 only offers component.  Again, not major features but they are nice to have, and do contribute to the overall price of the system. 

The one difference that favors Microsoft however is the inclusion of a 2.5” HDD with the Xbox 360 console; Sony’s hard drive will be optional and won’t ship with the system.

In the end it seems that Microsoft was more focused on spending money where it counts (e.g. CPU, GPU, HDD) and skimped on areas that would have otherwise completed the package (e.g. more USB ports, built in wireless, router functionality, flash card readers, HDMI support in the box, etc...).  Whereas Sony appears to have just spent money everywhere, but balanced things out by shipping with no hard drive.

Storage Devices Final Words
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  • LanceVance - Friday, June 24, 2005 - link

    Excellent article. Definitely the most thorough, informative, well researched article on the PS3/Xbox360.

    And most importantly, unlike every other article on the subject, it's not strongly biased toward one camp while making comments of substance.
  • yacoub - Friday, June 24, 2005 - link

    I bet the PS3 debuts at a higher price.

    Also regarding statements made on the Conclusionary page:

    --"That being said, it won’t be impossible to get the same level of performance out of the PS3, it will just take more work. In fact, specialized hardware can be significantly faster than general purpose hardware at certain tasks, giving the PS3 the potential to outperform the Xbox 360 in CPU tasks. It has yet to be seen how much work is required to truly exploit that potential however, and it will definitely be a while before we can truly answer that question."--

    I find it funny that once again the PlayStation will be the harder system to code games for that take full advantage of its abilities. If trends mimic the past (as they often do) this will lead to a large amount of mediocre games by companies too small to afford the dev time necessary to take real advantage of the PS3's advantages or on deadlines too tight to spend the time doing more.
  • Furen - Friday, June 24, 2005 - link

    It does sound pretty low but (I'm guessing) it's more than enough, I dont think they would have separated the dies unless it didnt lead to a big performance penalty. also, I'm guessing that the 256MB/sec bandwidth between the eDRAM and its processing hardware is 256GB/sec? Microsoft was using that number to inflate their "system bandwidth" total.
  • Woodchuck2000 - Friday, June 24, 2005 - link

    And for that matter, 32Mb/s inter-die communications in the Xenos GPU seems low to me
    :p
    Good article though guys!
  • Furen - Friday, June 24, 2005 - link

    Is there any word on the media center extender capabilities on the xbox 360? I think Microsoft mentioned something about that but I'm not sure if that was oficial or not. Just hope they allow us to plug in some video capture device and use it as a dvr eventually.

    As much as I like sony's playstation, I find it quite boring on the technical side. It seems like they're just throwing everything they can into it but nothing is really that exciting, or useful. Come on, dual-HDMI. I dont see myself having two HDTVs in such close proximity to each other. Gigabit router? Seems like they're desperate to use the extra cpu muscle. I wonder how heavy ethernet traffic will affect cpu usage.
  • Woodchuck2000 - Friday, June 24, 2005 - link

    Surely porting between multi-core PC software and Xenon should be fairly trivial, not fairly Non-trivial as stated in the article...?
  • jotch - Friday, June 24, 2005 - link

    I stands for interlaced whilst the P stands for progressive scan. Check out the difference at http://en.wikipedia.org/wiki/720p

    or

    http://en.wikipedia.org/wiki/1080i

    This should resolve this issue.
  • AnnihilatorX - Friday, June 24, 2005 - link

    1080i = 720p doesn't it? 1080p is the one Xbox 360 doesn't support.

    These "i"s and "p"s are confusing me
  • sprockkets - Friday, June 24, 2005 - link

    How is 1080i on your tv's? On my 1 year old Mitsubishi native 1080i tv using dvi from the computer at 1080i is basically useless since the text is too small and the image looks like the refresh rate is below 60hz, whereas HDTV broadcasts look fine. Using the other mode of 720x480 looked great.

    Will HD output from a console be any better than a video card in a computer? Is it just my tv?

    Cmon, did you really think nVidia would release something far more advanced for a console than for a video card, or perhaps, more specifically, having it way outperform 6800 ultras in sli?

    If you need around a 400w power supply for even non sli setup, what kind of heat and power will these new consoles need anyhow???

    Of course I am more interested in how the PS3 will work with Linux more than games hahahahaha, since Sony officially mentioned it.
  • emmap - Sunday, December 4, 2005 - link

    And that's this article, Sony and M$ have missed:

    it's not the number of megapixels, shader pipelines, CPU / GPU bandwidth, multithreaded or single threaded code which do a great game. It's imagination put in the game, gameplay, artistic art quality, human feeling we get looking at the characters, fun and so on. It's not only mathematics and physics: we don't love a game because it has X millions polygons or run at Y fps, no it's totally different. Just see all the mame fans out there, you'll see that they don't care about the obsolete hardware the game they are playing on, they care about the most important thing about game: ENTERTAINMENT!

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