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Forums - Microsoft - The Estimated Material Cost Of Kinect: $56 USD

haxxiy on 11 November 2010
AnthonyW86 said:

Though with assemblycosts, shippingcosts, store margin and taxes the total will go up to around $100 , so Microsoft will probably only be making $50 tops. And that's not counting in the bundled game.

With the $500 million marketing budget, it's a good thing that other software titles seem to be selling fairly good aswell.


This. $56 is way too low considering it's price and all the technology it embeds.



 

 

 

 

 

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AnthonyW86 on 11 November 2010
Nomad Blue said:
AnthonyW86 said:

Though with assemblycosts, shippingcosts, store margin and taxes the total will go up to around $100 , so Microsoft will probably only be making $50 tops.


They'll have R&D costs to cover also.  As well as the software that's bundled, and packaging costs.


Indeed, that's why i said it's a good thing that it looks like Kinect is selling quite some software aswell, with games like Kinect Sports being first party aswell meaning Microsoft is atleast getting some extra income from there. It's to be hoped that Kinect pushes some X360 hardware aswell, and that Kinect owners keep buying software in the future.