Xbox One missteps may end up costing Microsoft $1 billion

[Baalzamon]

DeadBigfoot21 said:

Dr.Henry_Killinger said:

DeadBigfoot21 said:

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

The costs are minscule but they are still there. A greater issue is how this will affect the Kinect and the console in the long run.

Kinect costs "almost as much" as Xbox One to make, says dev

 

http://www.gamesindustry.biz/articles/2013-07-15-kinect-costs-almost-as-much-as-xbox-one-to-make-says-dev

 

Old article but still if this is true then that means microsoft can be making more money even at the $400 price tag. They can probably even make money if it was $350 or less. This will leave the xbox with a big price cut window. 

Nah. If you look at the cost estimations, the total cost including Kinect, Xbox One, and a controller is around $471. Microsoft has said they will break even or make a slight profit. For Kinect to be almost as much as Xbox One itself would mean it is costing >$200 to manufacture alone, which is just plain unreasonable (especially considering the first Kinect retailed for $150). The more reasonable estimates I've seen put it at a $75-$100 manufacturing cost, indicating the $399 Xbox One does NOT have additional windows for price cuts.

I'd say this move has a lot more to do with the fact that Microsoft is ok with making even a little less per console in order to obtain market share and make money throughout the life of the console on that.