Forums - Microsoft Discussion - Wallmart prices Kinetics - 150 bucks (With no game)

arcane_chaos said:

question: I was talking to my friend a gamestop and he said the reason why Kinect is be retailed at $150 is because that's how much it cost to make.though he probably could be wrong, but doesn't that mean if MS sells Kinect at $150 would they just be breaking even or maybe even at a loss? I know a friend at gamestop isn't the most credible source but just wanted to get this out.(too lazy to make a thread)

The actual components in kinect as far as I know are not really expensive. In IR camera, a regular camera, a mic, one maybe two small motors, and some plastic. I don't belive it has a processor any more, and I highly doubt it cost 149 to make. Other than that its hard to predict the price, ms has sold other periphials at a high margin so you would think they sell kinect at a high margin, but since they are likening kinect to more of a console relaunch they go for smaller profit margins, or no profit/loss like they did with the 360 to help kinect gain traction and then make up the money on the software side of things. I really can't wait for an official announcement.