The Kinect isn't a game console, yes. It is still a significant piece of hardware though, and there is quite a bundle of technology inside it. Just because it i

The Kinect isn't a game console, yes. It is still a significant piece of hardware though, and there is quite a bundle of technology inside it. Just because it is an "Add On" device does not mean they priced it as a single use device. From what I've heard it requires its own developers kit additional to the standard kits sold now, and is unique to the way Microsoft usually deals with developer extras. It sounds like they are investing in this taking off and the licensing of game studios, and the sales of those games, to subsidize the product in some degree. To answer the second question, I know the Dreamcast was sold at a loss. The Nintendo 64 and GameCube were as well, but Nintendo decided that the Wii could be a success if they tried something new instead of trying to be bigger and better.