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Forums - Microsoft - Sure Kinect will have a lot of sales but will it bring in that much profit?

damndl0ser on 03 October 2010
Mr.Metralha said:

Profits for Microsoft Gaming division isn't their primary goal.


I get a really big laugh at quotes like these.

 

Of course profit is very important to MS's gaming division.  Without profits eventually even Microsoft has to fail.  

On Topic, I don't think the marketing will be quite so high.  Kinect has had a lot of free marketing so far and I expect this to continue a  lot.  If it gets good word of mouth then it will need even less advertising.  I am certain that if Kinect is a big success they will make a shitton of profits ( not only off of Kinect but also software, hardware and live memberships).



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ironman on 03 October 2010
Baalzamon said:

Yea, sometimes stuff like this isn't about making a profit right away.  When it releases and gets it's rave reviews, people will go and buy a 360 that didn't previously have a 360, then get Kinect, balancing it out for that purchase.  It will open up the total userbase to the 360 quite a bit...which will in the end allow Microsoft to make more profit on games, etc.  I betcha the games they make for Kinect and Move (such as Sports Champions) are relatively cheap to make and have very high attach ratios for these things, which is what makes them money in the end.


actually, everything is sold at an initial loss, it's business 101. Over time ,as more products are sold, the production costs are paid for.



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Mr Puggsly on 03 October 2010
Mr.Metralha said:
Mr Puggsly said:
Mr.Metralha said:

Profits for Microsoft Gaming division isn't their primary goal.

I don't think they are opposed to making a shit ton of money either.

With the launch of Reach, Slim sales, Live subscriptions, and Kinect. I have a feeling 2010 is gonna be a very profitable year for MS.

We just need to know if Kinect is being sold at a loss or not.

I can't imagine they are taking a hit at $150.

Also, its $50 off if you buy the console bundle. That leads me to believe its being sold at a profit.



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scottie on 03 October 2010

Profit is not that aim of Kinect. Kinect is designed to help the 720 compete next generation. It giv es MS's first parties and third parties who develop mostly for the 360 a chance to get to grips with developing motion controlled games, especially being as you can't even take too much of what people learnt making Wii games. It is also designed to convince 360 owners that motion controls in general and kinect particularly are good, so that they will buy the 720.

 

I reckon it probably will make a small profit, but MS will not care if it doesn't



ironman on 03 October 2010
scottie said:

Profit is not that aim of Kinect. Kinect is designed to help the 720 compete next generation. It giv es MS's first parties and third parties who develop mostly for the 360 a chance to get to grips with developing motion controlled games, especially being as you can't even take too much of what people learnt making Wii games. It is also designed to convince 360 owners that motion controls in general and kinect particularly are good, so that they will buy the 720.

 

I reckon it probably will make a small profit, but MS will not care if it doesn't


I disagree, It's sole purpose is to stretch this gen out, MS wants to milk the 360 for all it's worth and Kinect is a way of doing so.



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scottie on 03 October 2010
ironman said:
scottie said:

Profit is not that aim of Kinect. Kinect is designed to help the 720 compete next generation. It giv es MS's first parties and third parties who develop mostly for the 360 a chance to get to grips with developing motion controlled games, especially being as you can't even take too much of what people learnt making Wii games. It is also designed to convince 360 owners that motion controls in general and kinect particularly are good, so that they will buy the 720.

 

I reckon it probably will make a small profit, but MS will not care if it doesn't


I disagree, It's sole purpose is to stretch this gen out, MS wants to milk the 360 for all it's worth and Kinect is a way of doing so.


Only one way to find out, and that's to wait and see when the 720/PS4 get announced.



Darth Tigris on 03 October 2010
ironman said:
scottie said:

Profit is not that aim of Kinect. Kinect is designed to help the 720 compete next generation. It giv es MS's first parties and third parties who develop mostly for the 360 a chance to get to grips with developing motion controlled games, especially being as you can't even take too much of what people learnt making Wii games. It is also designed to convince 360 owners that motion controls in general and kinect particularly are good, so that they will buy the 720.

 

I reckon it probably will make a small profit, but MS will not care if it doesn't


I disagree, It's sole purpose is to stretch this gen out, MS wants to milk the 360 for all it's worth and Kinect is a way of doing so.


Actually you both are probably right.



Mr.Metralha on 03 October 2010
damndl0ser said:
Mr.Metralha said:

Profits for Microsoft Gaming division isn't their primary goal.


I get a really big laugh at quotes like these.

 

Of course profit is very important to MS's gaming division.  Without profits eventually even Microsoft has to fail.

On Topic, I don't think the marketing will be quite so high.  Kinect has had a lot of free marketing so far and I expect this to continue a  lot.  If it gets good word of mouth then it will need even less advertising.  I am certain that if Kinect is a big success they will make a shitton of profits ( not only off of Kinect but also software, hardware and live memberships).

Since Microsoft introduced the Xbox brand back in 2001, they haven't seen profit till ~mid 2008.

I get a really epic big ass laugh at misinformed people like you.

 

Edit: What I meant with my sentence is that Microsoft can introduce products at a loss with higher purposes than just to triumph on that market...

 



johnglen on 03 October 2010
SpartenOmega117 said:

What is the budget for advertising Kinect? Like 200,000,000? With a advertiisng budget like that how is Microsoft going to be successful financially? Also we don't even know if kinect will sell that well (even though it is likely). Do you guys think it will will bring in a lot of profit?

Shouldn't you be more concerned about when the playstation division will have a profitable fiscal year ?? The xbox division has been profitable for 3 years and will continue to be profitable for the next 2-3 years even if Kinect fails (which it won't).

Why weren't people concerned for sony when sony spent 150 million $ just for marketing the ps3 slim in Europe last year ?? Sony that has been in the red , as a whole , for 2 years . (and the ps division has been bleeding money for a lot longer ) .



johnglen on 03 October 2010
Mr.Metralha said:
damndl0ser said:
Mr.Metralha said:

Profits for Microsoft Gaming division isn't their primary goal.


I get a really big laugh at quotes like these.

 

Of course profit is very important to MS's gaming division.  Without profits eventually even Microsoft has to fail.

On Topic, I don't think the marketing will be quite so high.  Kinect has had a lot of free marketing so far and I expect this to continue a  lot.  If it gets good word of mouth then it will need even less advertising.  I am certain that if Kinect is a big success they will make a shitton of profits ( not only off of Kinect but also software, hardware and live memberships).

Since Microsoft introduced the Xbox brand back in 2001, they haven't seen profit till ~mid 2008.

I get a really epic big ass laugh at misinformed people like you.

 

Edit: What I meant with my sentence is that Microsoft can introduce products at a loss with higher purposes than just to triumph on that market...

 

The xbox division has been profitable in the last 3 fiscal years.