Kinect components cost $56 / £34

[greenmedic88]

libellule said:

quite cheap if u ask me
so MS priced kinect very high as a security and because they wanted to make tonne of money as early as possible
I m guessing, they will able to slash the price quickly if it is needed ... and still get direct money from the peripheral

I'm sure this was the plan.

Plus the initial inflated price would help offset the alleged $500m marketing effort.

I wouldn't be surprised if Kinect kits are set at MSRP $99 by the end of next year.