The Estimated Material Cost Of Kinect: $56 USD

[AnthonyW86]

Nomad Blue said:

AnthonyW86 said:

Though with assemblycosts, shippingcosts, store margin and taxes the total will go up to around $100 , so Microsoft will probably only be making $50 tops.

They'll have R&D costs to cover also.  As well as the software that's bundled, and packaging costs.

Indeed, that's why i said it's a good thing that it looks like Kinect is selling quite some software aswell, with games like Kinect Sports being first party aswell meaning Microsoft is atleast getting some extra income from there. It's to be hoped that Kinect pushes some X360 hardware aswell, and that Kinect owners keep buying software in the future.