Source?
Last I heard, someone estimated the cost of the parts in a Kinect at $56, which is quite a bit less than the $150 they sell for. Even with all the related costs, they're making pretty good money off every Kinect they sell.
Last I heard, someone estimated the cost of the parts in a Kinect at $56, which is quite a bit less than the $150 they sell for. Even with all the related costs, they're making pretty good money off every Kinect they sell.
Also, this is something that I consider "common knowledge" and I cannot point you to any sources, but for years console makers (Microsoft, Sony & Nintendo) has been selling consoles for (or even below) the manufacturing costs to allow for wider adoption.
From what I recall, Microsoft in the beginning was breaking-even after they sold at least 3 games for given console. That's why piracy is so big problem in the console world, not only is the console maker not making money, but they are actually losing money on pirates that only buy console.
Maybe their PHB and marketing drones won't get that, but I think their real managers and marketing people (they have to have exist for the xbox division to get where they are) are going to see how valuable this is. I mean, MS threw an entire hardware generation as a loss-leader, I think they'll happily take a break-even to make Sony look silly.
http://en.wikipedia.org/wiki/Nintendo_Wii#cite_ref-wiisalesp...