Xbox One missteps may end up costing Microsoft $1 billion

[DeadBigfoot21]

Dr.Henry_Killinger said:

DeadBigfoot21 said:
How are they loosing money?
They are selling consoles and that's how they make money.
Now that kinect is not needed they can make more money.
I heard the kinect itself costs more to produce than the console alone.

Manufacturing contracts are typically for a long time, im not an expert, MS would have to pay the exact same amount for the XB1 manufactuer with or without the Kinect. They are either stockpiling them, costs money, packaging them and selling them seperatly, costs money, or manufactuering the old skus and then repurposing a portion of them into Kinectless bundles, cost money.

But now they dont need to spend money for kinect since it isn't being bundled anymore. They will still keep producing more kinect devices but at a lower quantity. I am trying to find that article that says kinect costs more to make than the console. Dunno if its true though