3 ms·

Simple Google search will reveal various sources quoting costs at either $56 (parts only) or $150 (manufacturing). Even if it would be indeed "only" $56 for par

Simple Google search will reveal various sources quoting costs at either $56 (parts only) or $150 (manufacturing). Even if it would be indeed "only" $56 for parts, then you need to account for R&D, assembly, testing, packaging, worldwide delivery, marketing, not-so-small retailer's margin, import duty and VAT (where applies) and I'm pretty sure it would sum-up nicely to sub-$150. 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.

icegreentea 16y ago
The Wii is not a loss leader. Only the original xbox, ps3, and 360 are loss leaders. It's entirely possible for the kinect to be break even, or just barely loss, in which case I think Microsoft is willing to take the hit for more mindshare/market share. 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.
- piotrSikora 16y ago
  Yes, I completely agree with you... However, my point was that people who only buy Kinect (at break-even or some loss) without any intention of buying games or even console, cannot be the best thing (or even a good thing) for Microsoft, like dkokelley said.
  - dkokelley 16y ago
    Reread my original post. I said that the Kinect could bring innovation in other areas (beyond the Xbox), which in turn could sell more media center PCs, for example. I imagine that without the drivers, the Kinect would have remained a game controller novelty at best. I didn't intend to imply that the drivers would sell more Kinects or Xboxes.
baxter 16y ago
Agree with your point, but just wanted to clarify that Nintendo do not make a loss on the Wii. http://en.wikipedia.org/wiki/Nintendo_Wii#cite_ref-wiisalesprofit_76-0 http://en.wikipedia.org/wiki/Nintendo_Wii#cite_ref-wiisalesp...

icegreentea 16y ago

The Wii is not a loss leader. Only the original xbox, ps3, and 360 are loss leaders. It's entirely possible for the kinect to be break even, or just barely loss, in which case I think Microsoft is willing to take the hit for more mindshare/market share. 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.

piotrSikora 16y ago
Yes, I completely agree with you... However, my point was that people who only buy Kinect (at break-even or some loss) without any intention of buying games or even console, cannot be the best thing (or even a good thing) for Microsoft, like dkokelley said.
- dkokelley 16y ago
  Reread my original post. I said that the Kinect could bring innovation in other areas (beyond the Xbox), which in turn could sell more media center PCs, for example. I imagine that without the drivers, the Kinect would have remained a game controller novelty at best. I didn't intend to imply that the drivers would sell more Kinects or Xboxes.

baxter 16y ago

Agree with your point, but just wanted to clarify that Nintendo do not make a loss on the Wii. http://en.wikipedia.org/wiki/Nintendo_Wii#cite_ref-wiisalesprofit_76-0 http://en.wikipedia.org/wiki/Nintendo_Wii#cite_ref-wiisalesp...