There are a lot of people that finds Kinect price very expensive....well, it's almost a webcam, isn't it? It really is expensive? YES, IT IS! And Microsoft thinks you will buy nevertheless.
When I think about the profit that MS got with $150, it's very worth to take the risk. I think that what they are trying to do is:
(1)-Build a decent lunch line-up. I think that they are already giving incentives to Devs like free marketing. That is essential for (2).
(2)-Offer Cheap 360+Kinect bundle. That will not only attract new users for 360, but it will increase Kinect user base. New users don't care what the price of Kinect is in the shelves, but only for how much he is getting at the bundle.
The number one must be the main reasons of Kinect--> New Xbox users.
(3)-What is the need to offer Kinect to existing users at a loss or a barely profit? What they will gain with more kinect sold? The motion control fanboy war? If (2) works right, there will be a good userbase after holydays, and that will give incentive to Devs to make even more games. The value of the product will increase and the $150 will be justificable for most users.
(4)-????
(5)-Profit!
(6)-Microsoft probably will make NexBox compatible with Kinect. They need to maintain the Kinect value very high and continue to sell at high price(see Wii), that would retain users, make them buy nexbox instead of ps4.
Ps.: Not every consumer will follow these "rules". A few consumers will buy x360 withouth Kinect(but they are potential consumers in future) and a lot of current users will buy kinect on lunch, or even upgrade to 360s(both will give good profit for MS).
This is like a Ecosystem. They need to build a value on kinect, this is a fact. The problem is, they are gonna be able to make "hardcore" current users buy this thing? Well, they are the ones that buys things at a high price, so price is not a problem, the problem is if MS can actually make worth games to these people.
Maybe Microsoft is seeing the current users as a "bonus" and chance to profit. They are actually making the INVERSE strategy of Sony.
RESUME:
Microsoft-->Profit a little for bring Xbox to new homes and increase Kinect userbase and value by these new owners. Profit a lot from existing users.
Sony--->Sell Move to existing owners at a little profit. Increase Move userbase and value by these current owners. Profit for bring new PS3 users and make the value of Move stronger with these new users.
My Opinion:
Sony has a balanced strategy that probably will give them a nice profit. Microsoft has a strange strategy but IMO have high chance to make right. If it fails, that will still make some profit(it's already confirmed that kinect will sell a few millions). If it wins, that will give enormous profits that will most likely maintain x360 in the second place, and make a massive x720(lol) Lunch.
Your Opinion:
Please post Yours!!
