Report: Kinect Costs Microsoft $US150 To Make

There may be a simple reason Amazon, GameStop, Best Buy, Walmart and others are pricing Kinect for Xbox 360 at $US149. That's how much it costs Microsoft to make the thing, according to a new report.

Develop cites a "highly-positioned, trusted source" who considers the price of Kinect for the Xbox 360 "a topic of concern for his company", presumably if it's sold at its currently rumoured price (or higher).

Source pins Kinect manufacturing costs to $US150 [Develop]


Comments

    There is a telling mistake in the article. It claims that microsoft "Acquired" Primesense, this is not true - they bought 3DV and made a deal with Primesense.

    This throws the whole article into question.

    I wouldn't be *too* surprised if Microsoft decided to take a hit on the Kinect and tried to make the money back on games.

    If Kinect doesn't do too well then it'll cause some serious trouble, given how much time and money they've put into it.

      Absolutely true. I'm sure they'll be working of on a 2.2 (or similar) average for Kinect game purchases to find the break even point.

      If so how much can we expect to see off our new toy? $10 maybe $20 - any more and they'd need to sell way too many games for it to become profitable.

      Though I'm sure a gazillion copies of Fable 3 won't hurt.

    Hardly surprising. I think Microsoft and Sony have both been known to sell hardware at a loss just to get it into homes.

    The manufacturing costs should go down as they streamline the process, find cheaper parts, etc, etc - same as what happened with the 360.

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