Source pins Kinect manufacturing costs to $150

Publisher claims Microsoft ended up spending far more than expected on the device

http://www.develop-online.net/news/35198/Source-pins-Kinect-manufacturing-costs-to-150

Microsoft is paying around $150 in total manufacturing costs for each Kinect unit, Develop understands.

A highly-positioned, trusted source had given Develop the “$150 manufacturing cost” figure on the condition of anonymity, adding that the expenses of Kinect is a topic of concern for his company.

The news comes in the wake of rumours suggesting an internal struggle at Microsoft on the retail price of Kinect, a kit once touted to sell at £50, but now thought will cost over twice the price.

Microsoft says the company “does not comment on rumour or speculation”.

Last year a publishing source told MCV that Microsoft is “trying to get as close as possible to impulse buy” with Kinect – a plan which is looking less likely as evidence points towards a $150 retail price for the device.

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mabey true that its a costly unit, but if so, they will sell it at a loss and make up with software.

im betting $99 £79.99 for kinect.

its $149 with pre orders right now so

This is the current cost; do we know if whether the cost of manufacturing and/or components will increase if M$ have to implement this sitting down feature ?? because that could force up retail cost.

yeah could be £79.99 for Kinect, in which case it might be more successful.

Also, M$ still has to recoup the hundreds of millions (billions?) that they paid to acquire the Natal technology.

It will take a long time for M$ to recoup their investment if their development cost is really that much. 

eh? Hundreds of millions?? I think it's 35 million.

http://www.mstalkonline.com/microsoft-buys-another-business-israels-3dv/

Wow thats surprisingly high.

Yeah plus add in shipping and retailer markup, I guess they're hoping that prices go down soon.  Though if anyone can afford to sell this at a loss...

Well to start off I do think the 149.99 price point is a bit high. But why would they just release it for that price? They wouldn't even break even on it due to all the costs involved with getting it shipped/manufactured.

Will be interesting to see how this plays out.

Sounds too expensive for me. Someone said this isn't the same camera they showed last year, that Microsoft removed parts making the camera less effective. If so they probubly did so to cut costs I bet the 150$ price tag is probubly close to what it costs Microsoft to make. I don't think Microsoft would mind loosing 50$ per unit if it sells at least one first party title per unit.

Microsoft might sell this thing at a loss!

manufacturing costs is way below $150...this "source" is way off.