Why is Microsoft hanging on to kinect so much?

[kitler53]

SvennoJ said:

kitler53 said:

for the same reason sony hung onto bluray so bad.

they think they have a long term strategy and long term profit potential.  they have invested soo much money into the project they feel like they need to make it successful by any means necessary to justify that investment.

Except Sony could not remove the blu-ray drive. Digital wasn't a real option yet and re-releasing all games on DVD would be a nightmare.

Sony also had heavily invested in a video format that would make them money in both hardware and video sales, stuff that's the bread and butter of their company. Blu-ray failure would be very costly. MS however wants to be the middle man between you and your tv. MS can recoup their money faster by losing Kinect and make momney the traditional way by selling games. However the potential tv pot of gold is much larger.

yeah, i suppose.  MS has it easier here because it will be less devistating to the xbone to back out of their kinect investment than it was for ps3's blu ray.  but the initial decision was very similar.  some business guy at sony (during ps3 design) and MS (during xbone design) said:

       "we are willing to comprise our product's other core vales in order to include this other feature."

in sony's case they comprised heavily on price selling a really expensive product at a massive loss.  in ms's case they comprised on price and performance putting out a somewhat expensive product with relatively poor performance.