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That's not bad, although before anyone assumes MS is therefore raking it in a few other things need to be factored in.

First, what is retail markup?  Retails want their slice of the profits.  So if you pay $149 for Kinect an immediate chunck of that goes straight to the retailer.

Whatever's left goes to MS.

However, in addition to the $56 there will be assembly costs, shipping costs, transportation, etc.

So, while this does mean MS should be able to make a nice profit (for an electronic device) it doesn't mean the difference between $149 at retail and $56 for parts is all going to MS.  They will only see a part of that difference.



Try to be reasonable... its easier than you think...