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Well, it's the retailers that get £129 for each Kinect so Microsoft only probably gets about 90-100 from the retailers per unit. At least in the UK where £20 odd pounds would have to go to VAT alone on each unit sold. All the costs mentioned in the above post of course, and I would add the costs of producing units purely to be used as replacements and extra parts for refurbished models.

I still think though that Microsoft will still squeeze £10 profit or so per unit, but the real money will come from the games and extra live subscriptions, especially the family subscription.