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This Week in the Business: The Cost of an Xbox One

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What's happened in the business of video games this past week ...

STAT | $471—Amount it costs Microsoft to manufacture each Xbox One, according to research firm IHS; this compares to a manufacturing cost of $381 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 $20 million—Amount that charity Child's Play has raised to help sick children and their families through play in its ten-year history; according to Child's Play, the gaming community has raised over $2.5 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 ten 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 | $250 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 $100 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

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