silicon said:
I read it in a Canadian Business article. Phil Torrone, the man behind getting the open source driver for kinect, said MS likely subsidizes each Kinect. With materials at $56 and after additional costs such as manufacteuring, shipping, margin etc, it may be a net loss for each one sold.
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There's no way. Otherwise they'd be losing an extra $50 on each bundled unit and I just don't see that. Unless he was talking about the bundled unit in the first place but even then I doubt it.
Microsoft themselves said it was profitable from the outset.