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If this is truly a sign that Kinect might be sub-par Microsoft is in trouble no matter how you put it. Even if it gets a lot of sales during the first few months due to the marketing, with a budget of $500 million the first 5-10 million Kinect units won't turn in much of a profit. If sales then die off because the product doesn't work well, they will be lucky if the can recoup the development cost from the higher console and software sales.