Dr.Henry_Killinger said:
With the Kinect bundled at 399, assuming the Kinect is 75$ (IHS), MS would have to sell 13 million of these SKUs before incuring 1 billion in losses. 50 million SKUs would only be 3 billion in losses, and by that point manufacturing prices would drop significantly. Considering the fact that the XB1 is first place in software sales, why couldn't that 75$ loss per console easily be made up in the sale of 2-3 games? Its not only affordable, but easily sustainable especially for MS. You're the one that made the point about MS throwing their money around to win in a war of attrition, and yet giving away the Kinect is one of the cheapest ways to secure a true advantage against the PS4. Now its simply a matter of preference, doesn't matter how advanced the Kinect 2.0 is when the competition has something that can do the same thing and both are optional anyway. |
$75 in parts doesn't take into account other expenses before a product makes its way to a store shelf. How overly simplistic.
Not only would it put MS in the red, dropping the kinect X1 to $399 globally is a sign of weakness and a very early price cut. This way, it isn't a price cut but more of a lower end sku introduction.








