Kinect games sales .... not so hot.

[silicon]

daroamer said:

silicon said:

darklich13 said:

silicon said:

That's not good... since MS needs the software to sell.
Apparently they're losing on every Kinect.

Where did you hear that? From what I heard Kinect cost $56 for Microsoft.

http://www.gamespot.com/xbox360/action/adrenalinmisfits/news.html?sid=6283956

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.

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.

Or they could just have a huge margin on the xbox.

It was just speculation on the part of Phil Torrone. If they're profitable that's much better for MS. Before they announced the price, there were reports of arguments about what it would be, making the story that it's not profitable slightly believable.

In any case, if they need software sales to turn a profit, low software sales is not good.