Semiaccurate on his site did a big two part writeup on the XBox One's 5 billion transistor monster of a CPU/GPU. It has been heavily customized and has a lot going for it. He was kind of gushing over it, highly unusual for him. It covers all the changes MS and AMD made to the original Jaguar.
MS spent $3 billion dollars on customizing the CPU with AMD, the new Kinect has been said to cost more than the console itself, and all those servers are being added. I don't think MS will ever make a profit on the One.
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