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Jordahn said:
TRios_Zen said:
Jordahn said:

So we are to NOT believe VGChartz's numbers, but we are to believe that is costs less than $60 to make one Kinect unit?

When did Microsoft endorse the site that estimated the costs of Kinect?  I honestly missed that.


They didn't, but they certainly didn't denounce it, leading some to believe the sub $60 while adamately downplaying VGChartz's numbers.


Huh? You are aware that so called "teardowns" are a technology staple? Everything from the Apple products to consoles gets a "teardown" by one or more sites that specialize in these things. They estimate the BOM of say, the iPhone, and every other notable gadget.

Who would think a teardown report was some kind of Microsoft conspiracy???

 

Besides, these teardwons only contain a BOM, or bill of materials. They dont include labor, R&D, shipping and distribution, marketing, and other costs of a product. All they do is look at the components, and make an educated guess at the cost of the materials in the device.

It's fair to say on a BOM basis, Kinect is nicely profitable. But once you figure in R&D, and the supposed 500 million marketing budget, the picture becomes muddier.