By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sales - another way to look at the kinect vs. move situation

ok, so microsoft has spent 500 mill advertising kinect.  now i dont think sony has spent any where near that much money in advertising, im guessing somehwere around 100 mill. so the kinect has potentially outsold the move for the first 10 days, but who do you guys think is making the better profit, microsoft or sony?  (sorry im not too specific on numbers, these are just guesstimates)

 

note: i recently read that it only takes $56 to make a kinect, and microsoft has it priced at 150.  so this means microsoft has made roughly 100 mill on selling 1 mill kinects (150*1 mill   -   56 * 1 mill = 94 mill) .  im not sure if this source is accurate or not, but it would be appreciated if someone could find the actual cost to produce a move controller.

 

source for kinect cost: http://www.xbox360achievements.org/news/news-6855-Kinect-Costs-$56-To-Manufacture-According-To-UBM-TechInsights.html



Check out my video game music blog:

http://games-and-guitars.synergize.co/

 

 PROUD MEMBER OF THE PLAYSTATION 3 : RPG FAN CLUB

 

He who hesitates is lost

Around the Network

Were still missing the R and D expenses so its hard to tell.



The retailer takes a cut too and distribution cost money. My guess is MS probably makes 75-80$ of profit for each Kinect sold which is great money for them.



This was discussed before; you can't only count material costs.  There are labour costs in manufacturing and boxing, shipping fees, retailer markups, then you look at sunken R&D costs and marketing expenses.  I doubt that it's selling for much of a profit.  

Move should have netted more of a profit at this stage but may not be as big a software seller with BC titles. 



Microsoft is likely making considerably more profit due to the software sales. 



Around the Network

I swear some of you think everyone in this business does it for charity.

The components to build the production Kinect may cost $56, but that is only part of it.

What about the factory and people that put the thing together. Do they do it for free?

What about the logistics and shipping companies that get the product to stores. Do they do it for free?

What about the retailer that sells the product. Do they do it for free?

What about the development costs for Kinect Adventures and the Kinect system software. Was that done for free?



Its libraries that sell systems not a single game.