| crissindahouse said: what? so you say costs are $75 and they get $125 right? so $50 profit. then you say they make $250m profit with 5 million sold kinect? 5m kinect x $50 profit = $250m profit $500m ad campaign - $250m profit = $250m loss after 5m sold kinect! and you forget taxes (in germany like 30€ for the 150€ retail price), development and operating costs like the service (more people for call center, warranty) ah yeah kinect adventures costs a little bit as well to develop and produce. sry if i dont understand you because english isnt mine but i think your calculation is a big fail. |
First off, I said that the $500 million ad budget would be paid in very little time. That $250 million was JUST from Kinect. Obviously profits on 360 hardware, software, etc. will make up the rest of that $250 million in a very short amount of time is what I was saying.
As far as taxes, none of that goes to the manufacturer so I am not sure I get why you mentioned that.
I very briefly tried to cover the topic of R&D by simply stating that even with the Kinect R&D going on these past 2 years MS has remained very profitable in the Entertainment and Devices Division. Kinect Adventures I suppose would introduce some other minor costs, but as it is mostly just a demo for Kinect's technology I believe it can be included without trying to separate anything.
