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...







