I find that hard to believe when the original kinect was so cheap to make. There don't seem to be a great deal difference between the 2 versions  

~http://uk.gamespot.com/news/kinect-cost-56-to-make-report-6283956

I think some people here are making the mistake that if MS or Sony sells their console for X amount at retail then that's exactly how much money they will get. Things like Taxes and retailer fees will take a nice chunk out of that.

I think they will both be taking 'at least' a £100 loss in the UK.

As I recall the consoles are £350 and £430 respectably at point of sale. If we give the retailer a 'very' humble %10 per sales and then take away VAT at %20 then they only get about £250 and £310.

Negligible losses for both. Accessories and games will offset any losses from the core console.

Pachter said Sony wont have a significant loss compared to this gen so MS shouldn't either knowing they are bundling the Xbone with the whole Kinect. Selling Kinect separately would lead to losses, because of the demand has surely gone down on those devices now, so it was smart of them to force it down peoples throat. They better support that product or its the second version is just waste of everyones time.

The whole business model that Sony/Microsoft have been using for their previous consoles was that console made a loss at first and they make money back on Royalties, Services & First Party content. I don't think this business model has changed in the slightest for X1/PS4.

no way the kinect 2 costs the same as the console itself. let's say the basic xbox one bundle is sold without profit or loss.

250$ for the console
250$ for kinect

no way! if kinect would be a standalone peripheral they would sell it in retail stores for 149,- and make profit of that.