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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.

Doubtful. That $56 should include manufacturing. Shipping isn't that expensive. In the first two months it's possible that they're "subsidizing" it but only because the launch advertising cost is outrageous. As soon as Christmas is over, MS will probably be turning a hefty profit on every Kinect sold (if they're not already, which I believe they are).

Given Kinect's tech, it's hard to believe they're subsidizing it when it retails for $150. There just isn't anything there that would possibly cost that much money to manufacture.




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