MS wanted to manage the cost over the long term, while guaranteeing high (and apparently higher than-PS4) levels of bandwidth.
This was more work than slapping on GDDR5. Add to this their own coherent bus, their own Kinect silicon, their own better-than-anywhere-else audio solution, their support for minimising virtualisation overheads ...
... they took on a a far bigger technological challenge than Sony. And yet you say ...
I dont know if this is the thread for it, but it's beginning to look to me like MS botched the Xone architecture.
They gained DDR3 at the expense of significantly less power, apparently.
I guess we dont, nor will ever, have access to the P&L sheets, but by Sony's fiscal's it's certainly not looking like the PS4 hardware is a big money loser, in fact it looks to perhaps already be break even or better, all for $399 out of the gate!
Unless MS can show me, by undercutting PS4 on price by at least 50 dollars, if not $100, over a long term, then I dont know if the DDR3 savings really exist, or are significant enough.
Show me the DDR money, basically.
All this time I've framed it mentally as "MS had to be less powerful because they wanted to include Kinect!". But it's beginning to appear like the PS4 style design would have had no real drawbacks, regardless of Kinect or not! It doesn't appear PS4 is any more expensive. The base PS4 is $399, the same as the base Xbox One.
Too be fair to MS, I'd argue 360 was better engineered (in power terms) than PS3 (coming out a year prior but being basically equal, regardless of the reasons, is significant), and Xbox certainly lambasted PS2 in power, if arguably a bit basic in design. So, I mean you aren't going to win them all I guess. And I'd also wonder whether MS engineering got worse this gen, or Sony's just got that much better with Cerny.
But the bolded part is key, it's not set in stone just yet. Just that a picture is taking shape.
The problem with the bolded sentence is, even if such does come to pass, it then becomes arguable strategically whether $50 or even $100 is a worthwhile trade in the market for (possibly) substantially less power. That answer is at the very least debatable imo. But it's currently a moot point cause MS hasn't even reached that point yet to begin with!
And if you want my reason WHY MS botched it IMO, it's because of their bizarre insistence on ES/EDRAM. Which they seem to be committed to regardless of benefit or lack theoreof.
There's other arguments here, an argument can be made that Xone will turn out in the end to be "good enough" hardware. But for now, yes.
To try to keep it a little on topic, MS did put out a call for an industrial Xbox hardware engineer recently, right? That's what they must do now, try to come out with a significantly cheaper slim revision ASAP. I think they may be giving up DDR3 savings on the big bulky, too-high quality design.
But that was another strategic stupidity by them, prizing silent operation above what actually counts. Basically the dumbness of know-nothing suits deciding everything matters except for the actual gaming part.