Microsoft's Kinect motion sensor for Xbox 360 will generate about $2 billion in revenue for the gaming industry, a Wall Street analyst said.

So reports All Things Digital, citing a note from analyst Sandeep Aggarwal at Caris & Co. Kinect, which uses cameras, sensors and software to watch a gamer's movement, also is driving sales of other Xbox-related products, including games and accessories.

Aggarwal said Kinect will benefit Microsoft in four key ways, as outlined by AllThingsD:

Better material attach rate for the 45 million Xbox installed base

Higher adoption and market share gain for the console itself

An uptick from the sale of new titles

Lower attrition and higher gross new subscriber growth for Xbox Live users

"As expected, the launch of Kinect increased noticeably the overall buzz around Xbox and helped improve the adoption of the console," Aggarwal said, according to ATD. "Just before the launch, Microsoft increased its forecast for worldwide sales from 3 million to 5 million by the end of the year. This forecast seems conservative now, given the strong reception."

http://blog.seattlepi.com/microsoft/archives/231578.asp

kinect 25 million here we come!

Ladies and gentlemen, this is what we call affectionately call a game changer.

that will only be known in an years time

OT:

Kinect is surely looking damn good.

MS marketing is working

In a year's time, it will only be even more confirmed.

And you're right.  Marketing put the word out and user experience and word of mouth are doing the rest.  May even convince me to get one once someday ...

It all depends on how good the games that come out for it are. We shall see.

This will be historic if a peripheral actually keeps continuous sales of these levels and keeps hardware up to beat-- which is why I'm not so sure it'll last.

But heres to hoping-- makes me a Gears of War Kinect game!

So once America's numbers come in, it will be around 4 million sell-through with 4 weeks left of the holidays?

I thought the projected 5 million sales was inflated retailer orders but now it seems like they'll sell closer to 6 million to consumers, that's pretty amazing. 

Keep on trucking. I always like hearing good news about kinect. Hopefully someday it will be up there with all of my favorite input devices-mice, keyboards, normal console controllers, the wii mote, and kinect. I dont care for touch screens yet.

what do you mean by even more confirmed? i just said to wait an year so that we know the pattern of sales throughout the year.

kinect is doing awesome but don't forget its holiday period so sales are high and MS is spending MEGATON $500m which will sell almost anything.

and then too we won't know if it is a "game changer".for it to be a game changer,it needs to be like Wii,just race miles ahead of its compeitors and in this i don't mean competing with MOVE,the amount of 360's Kinect sells

There is no denying it at this point...KINECT is selling more than the majority of people (including me) though.