Mon, Jun 21, 2010 | 18:53 BST
Rumour: Kinect units cost $150 to manufacture
Each Kinect unit is costing Microsoft around $150 to manufacture according to reports emerging this evening.
Develop Online is claiming a “highly-positioned, trusted source,” has told them the cost of each unit.
The source also told Develop that the $150 expense of each Kinect unit is “a topic of concern for his company.”
Develop did ask Microsoft for it’s comments, however it was met with the usual “no comment on rumour or speculation” response.
We were told just before the Kinect reveal in LA last week that a premium version of the motion sensor would retail for $189.
Kinect will be released in November this year.
16 comments
#1
Razor
21/06/10, 6:56 pm
No wonder they can’t decide on the price.
#2
Erthazus
21/06/10, 7:10 pm
Jesus… Wow… Microsoft is trying to boost it’s console with this failure, i really think Microsoft should just throw this piece of turd away and concentrate on GREAT games. When i saw how much games cost for that thing i was absolutely surprised. CASUAL GAMER won’t buy these games for that price.
They announced only one partner Crytek, but had just a lot of Wii/Eye toy games from RARE and other 1st parties. Come on. Thats just wrong.
#3
Bulk Slash
21/06/10, 7:11 pm
You’re going to have to tell us the price sooner or later Microsoft, why not just rip that plaster off now?
If it’s still $150 even after they’ve removed the processor from the unit I wonder how much it would have cost originally?
#4
Amored
21/06/10, 7:59 pm
Kinect could still be sold for $99-149, though. At launch of Xbox 360 they sold the consoles with loss. Even the store did.
#5
get2sammyb
21/06/10, 8:07 pm
Still think they’re going to go $99 and lose money. If that doesn’t take off though, they could be in trouble. Investors are already pissed off with the XBOX, apparently.
#6
Erthazus
21/06/10, 8:14 pm
“Investors are already pissed off with the XBOX, apparently.”
Really? In US it’s still selling better then PS3 for about 5K
#7
chipvideo
21/06/10, 8:24 pm
I agree with the taking a loss on the product. I think they are subsidizing the new 360 at the $299 price to make up for the marketing and selling of the kinect this fall. I was shocked when I saw the price of the new 360 at $299. I was expecting $249 at most.
#8
Dannybuoy
21/06/10, 9:18 pm
wallet fail
#9
Kysshin
21/06/10, 9:24 pm
@ 6
True, but the same can hardly be said concerning the rest of the world where Sony is first. And since investors look at the global picture, no wonder they’re pissed.
#10
NiceFellow
21/06/10, 9:32 pm
@6 so what?
The margin on hardware like 360 is very low compared to Office and Windows. Investors don’t give a rats ass about strategy or the company. They want money, and that means they want companies focused on high margin core business, not low margin high risk non-core business strategies.
If MS start moving away from profit around 360 due to having to sell Kinect at a loss (assuming the rumour is true) then I guarantee investors aren’t going to be cheering the move.
The whole Xbox venture for MS has only recently moved into profit while as a whole their sunk costs (expenditure to date) are more than profits – meaning that LTD MS haven’t really made a true profit on Xbox line vs overall costs.
#11
itwa5me
21/06/10, 10:52 pm
does anyone else have a problem with a freakin camera pointed at them in their own homes?
I don’t want to live life like the book 1984.
Have you read it?
Its easy to desensitize people with putting cameras in their homes…if it entertains them.
Something tells me if the government put cams in your homes for security reasons you would have a hard time swallowing it.
Another thing people should start asking is what kind of information is saved and used with this device.
I bet people didnt know that when your wireless computer hooks up to the ps3 that it takes snap shots of whats on your computer…..to sell that info to god knows who for them to do god knows what. Thats why the privacy contract “agreement” was changed.
They are spy tools.
Why else would they be “paying” to sell it to you for a loss? Any other companies have any interest in this product? Gee I wonder, no its just the wonderfully giving corp. of microsoft, a “thank you”. lmfao
#12
theevilaires
21/06/10, 11:30 pm
“PEW!
PEW! 
PEW! 
”
Kevin Butler + Move = Win
M$ + Natal = WTF
#13
LordCancer
22/06/10, 1:21 am
they have like a 10% margin on there hardware division which includes xbox & zune and something like a 70% margin on the windows business. investors don’t care about the games or hardware division and think its been a failure. *shrugs*
#14
koopa
22/06/10, 4:43 am
@ 11 The same could be said about cellphone, the Government could reprogram you cell to turn on even when its off(unless you remove the battery) We r screwed, our own tech. could be used against us.
#15
mojo
22/06/10, 8:16 am
what is ment with premium version?
What can be premium about it?
#16
ARFarokhi
22/06/10, 10:48 am
I’ve never been intrested in motion control gaming. so it doesn’t matter for me if it’s 50$ or 150$. i’ll never buy this sh!t.
@11
Such things are just possible in iran! like they’re already controlling people every minute! even SMS’s that contain the word “Green” (Green revolution) won’t be sent to the destination. Yahoo messenger is closed as the president ahmadinejad wants! and other pathectic efforts to save their kingdom!