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Forums - Microsoft - Kinect components cost $56 / £34

Rainbird on 12 November 2010
scottie said:
Rainbird said:
scottie said:

I suspecty (assuming that analysis is true) that Microsoft is making a fairly healthy profit margin on the hardware, although that is not overly surprising - accessories have the highest profit margin of MS:EDD products by a considerable margin.

Also, isn't there a game bundled for that cost?

Yeah, but it's developed at Microsoft, so the only cost is the disc and packaging and what else comes with that. That's not a whole lot.

Well, and that cost to develop it - all those wages and shit. Alternatively, all the lost revenue that could have been generated from selling said game, or a different game made by the same team.

I thought you meant how much it adds to the cost of the package, since you asked if there wasn't a game bundled in at $150. Of course I'm aware that they need to earn money back from developing the game.



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Demotruk on 12 November 2010
kowenicki said:
Demotruk said:
kowenicki said:
Demotruk said:
  • It is a budget for a longer period of time
    		•


    Do you have any evidence of this? I've looked through news reports, and they are all either unspecific or they say it's for the holiday season alone. Where was it said that it's over a longer period of time?



    Can you find the xmas marketing budget for Nintendo and Playstation please... I doubt you will see much if any difference.  Sony will probably be higher.. they have more territories to cover.

    They don't show them in their financials, but big marketing campaigns from Sony and Nintendo tend to be more than an order of magnitude less than that. Considering that Sony NDD entire costs over the christmas quarter last year were $2 billion, and that includes Vaio etc., the burden of proof is definitely on you if you're suggesting they spend something like quarter of their costs marketing PS3/Move etc.


    Of course they show them.... its in their P&L

    Found it:

    Nintendo spent $461m in the six months to Sept 2010... the QUIETEST time of the year.   

    Edit..

    and oh look Nintendo spent about 450m to 500m dollars in the three months leading up to December 09. 

     


    That's across two platforms, so MS is doubling Nintendo's quarterly marketing spend on Wii and more than doubling their launch campaign spend for Wii ($200 million) on Kinect alone.



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    www.xnagg.com/zombieasteroids/publish.htm

    It is largely a technical exercise but feedback is appreciated.

    Shadowblind on 12 November 2010

    So MS is profiting $100 from each peripheral sold?

    And I paid $150 for mine? . . .

    Not cool.



    GOTY Contestants this year: Dead Space 2, Dark Souls, Tales of Graces f. Everything else can suck it.

    Seece on 12 November 2010
    kowenicki said:
    Demotruk said:
    kowenicki said:
    Demotruk said:
  • It is a budget for a longer period of time
    		•


    Do you have any evidence of this? I've looked through news reports, and they are all either unspecific or they say it's for the holiday season alone. Where was it said that it's over a longer period of time?



    Can you find the xmas marketing budget for Nintendo and Playstation please... I doubt you will see much if any difference.  Sony will probably be higher.. they have more territories to cover.

    They don't show them in their financials, but big marketing campaigns from Sony and Nintendo tend to be more than an order of magnitude less than that. Considering that Sony NDD entire costs over the christmas quarter last year were $2 billion, and that includes Vaio etc., the burden of proof is definitely on you if you're suggesting they spend something like quarter of their costs marketing PS3/Move etc.


    Of course they show them.... its in their P&L

    Found it:

    Nintendo spent $461m in the six months to Sept 2010... the QUIETEST time of the year.   

    Edit..

    and oh look Nintendo spent about 450m to 500m dollars in the three months leading up to December 09. 

     

    I wonder why everyone and their mother is banging on about $500 mill Kinect Advertising when you see stats like these :/



     

    Seece on 12 November 2010
    Shadowblind said:

    So MS is profiting $100 from each peripheral sold?

    And I paid $150 for mine? . . .

    Not cool.

    lol no, nowhere near. Retail, packaging, delivery, R&D ect all come into force.



     

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    Shadowblind on 12 November 2010
    Seece said:
    Shadowblind said:

    So MS is profiting $100 from each peripheral sold?

    And I paid $150 for mine? . . .

    Not cool.

    lol no, nowhere near. Retail, packaging, delivery, R&D ect all come into force.

    Oh, thats a shame. I don't like it when IGN lies to me . . . :<

    http://xbox360.ign.com/articles/113/1133932p1.html

    But they gave Tales of Vesperia an 8.2 when it AT LEAST deserved a 9 . . . so . . . yeah.



    GOTY Contestants this year: Dead Space 2, Dark Souls, Tales of Graces f. Everything else can suck it.

    Shadowblind on 12 November 2010
    kowenicki said:
    Shadowblind said:

    So MS is profiting $100 from each peripheral sold?

    And I paid $150 for mine? . . .

    Not cool.



    good grief... how wrong can you be?  heard of R&D, marketing, shipping, tax, retail cut?

    also.. was it bad when sony were making bucket loads off the PS2 towards the end? and why do the sony crowd rejoice when sony makes money and the PS3 is finally proftable but sneer at MS when they do the same?     

    Can you explain the difference to me?

    Oh gawd. No. I'm all for Microsoft making money on Kinect. But if my sources (lolIGN) are to be believed then Kinect could have been priced at $99 and possibly sold a good deal more and still made them money. And I would have been able to get Kinectimals for my sister.



    GOTY Contestants this year: Dead Space 2, Dark Souls, Tales of Graces f. Everything else can suck it.

    Galaki on 12 November 2010
    kowenicki said:

    For the same reason that when MS make profit its bad, "eviil MS", but when sony/Ninty make it, it's good... "YAY PS3 finally profiting"....  its all very silly.  


    Don't try to point out the double standard. It will be ignored :)



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    Seece on 12 November 2010
    Shadowblind said:
    Seece said:
    Shadowblind said:

    So MS is profiting $100 from each peripheral sold?

    And I paid $150 for mine? . . .

    Not cool.

    lol no, nowhere near. Retail, packaging, delivery, R&D ect all come into force.

    Oh, thats a shame. I don't like it when IGN lies to me . . . :<

    http://xbox360.ign.com/articles/113/1133932p1.html

    But they gave Tales of Vesperia an 8.2 when it AT LEAST deserved a 9 . . . so . . . yeah.

    Yeah that is pretty awful journalism, do they think it's that black and white!!!



     

    FireBringer on 12 November 2010

    That's a lot, I was thinking it cost about $40 to produce the not. People claim that Kinect is revolutionary to gaming, but all of the tech exists and for a long time now.