Xbox Series X Chip Production Costs Hint At Potentially High Retail Price

Microsoft recently gave a highly-technical talk on the Xbox Series X system architecture as part of the recent Hot Chips 2020 event, and hinted that the console could be quite expensive when it releases this November.

As reported by PC Mag, Microsoft pointed out during the presentation that keeping costs down in the production of the chip has proven tough.

The company is using manufacturer TSMC’s 7nm+ SoC technology to include more transistors on the silicon wafer (15.4 billion, which is an increase over the 6.6 billion found in the Xbox One X) - but the wafer prices for this process are more expensive than the 16nm tech used to build chips for the Xbox One.

Xbox Series X Chip Production Costs Hint At Potentially High Retail Price 2
Image: Hot Chips

Additionally, the yield rate for this process is also apparently lower, and while shrinking the chip can boost those rates, the chip in the Xbox Series X has only been reduced slightly compared to the Xbox One X.

Here's what Xbox architect Jeff Andrews reportedly had to say about it:

"Basically we have the same die area across three different technologies, and it’s significantly more expensive for the die in the newest one..."

Ultimately, this just adds to the speculation that the ultra-powerful Xbox Series X will be an expensive system when it launches, but we'll have to wait a little longer to find out exactly how costly it will be.

What are your thoughts on this? How expensive will the Series X be? Share your predictions in the comments.

Do You Think The Xbox Series X Will Be More Than $500?