Honestly, depending on the actual cost, a $150 pricepoint for Kinect would make sense from a business perspective. A device like Kinect is not the same as a something like the 360 or ps3. You can't sell it at a loss and expect to make that money back through sales of software and accessories. Hell, Kinect doesn't even HAVE any accessories, and while hardcore gamers may buy 10 games for a console, the market they're aiming for with Kinect likely do not.
Just look at the Wii. Remove Nintendo's titles and the software sales are pretty weak. There are plenty of people out there that buy Wii Fit or Just Dance and nothing more.
The reason Nintendo is making money hand over fist is because:
1. They've made a profit on every system sold since day one. That's profit on over 70 million units, plus extra controllers and whatnot.
2. Their first party titles sell incredibly well. Wii Play, Wii Fit, Mario Kart, etc. are all over 20 million units sold, and New Super Mario Bros. Wii will join them eventually.
Microsoft has no software that they can expect to sell near that well, thus their only option to ensure profitability is to sell the actual device at a profit.
I think Kinect will really struggle at this pricepoint, but it may be their only option given the technology they chose.
