How can a video game console run a high end game but cost way less than a good computer which does the same?

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Most video game consoles sell for around 500-600 dollars and can run very high performance games like God of War and Red Dead Redemption 2 while also being able to access the internet.

But if you want a computer that can do the same, it tends to cost way more, like above 2000 dollars. The processor or graphics card components alone can cost more than an entire console.

Why? If it seems like they have the same things in terms of hardware, why are the prices so different?

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Anonymous 0 Comments

Computer parts have massive mark ups.

Consoles are mass produced with negotiated low mark up prices.

On top of that usually consoles are sold at a loss

The GPU equivalent in the Xbox 360 was an 1800xt which at the time of the 360s release didn’t even exist on PC. If came out months later.

The GPU retailed for $500 which was less than the entire 360 cost.

It was the same manufacturer. But Microsoft not only negotiated high volume low cost for the part but sold the Xbox 360 at a loss.

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