Sure Kinect will have a lot of sales but will it bring in that much profit?

[Icyedge]

ironman said:

SpartenOmega117 said:

What is the budget for advertising Kinect? Like 200,000,000? With a advertiisng budget like that how is Microsoft going to be successful financially? Also we don't even know if kinect will sell that well (even though it is likely). Do you guys think it will will bring in a lot of profit?

You are assuming Kinect is a major part of MS's business, reality is, it's just a drop in the bucket, It's not going to do much if anything to harm MS's bottom line if it fails. At any rate, it won't make a profit right away, but over time it will. Anybody with a rudementary knowlewge of business knows that. Andthen lets not forget, this is also set up to be a huge contendor next gen if it works. So even if they lose money this gen, nexty gen it will assuradly bring a profit. A really good example of this is the origional Xbox, I don't think it ever made a profit but it set MS up nicely for this gen.

Your right, they are taking a chance worth taking. Whatever the outcome. The major incentives it can gives them justify the high risk related to this product. We can argue whether its high or low risk. I personally consider high risk, but still, its worth it considering the possible outcome and Microsoft means.