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FEATURED VOXPOP whytenoiz ~~        When I was eleven years old, it was a very good year, and I can remember my daily routine vividly. These were the years before I owned a Sony Playstation, and I used to venture to my friends house - everyday after school - to watch him play through Final...

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Kinect is Cheap to Make, Microsoft Sees Large Profit Per Unit

Posted on Friday, November 12 @ 07:38:27 Eastern by
Just how much does Microsoft earn by making you the controller?



With Kinect currently selling like crazy, even fetching premium prices on Ebay, you can be sure that Microsoft is making a killing this holiday season on their new controller-free motion sensor. But how much they actually make per unit, largely depends on how much it costs to produce each Kinect in correlation with the retail price.

According to a complete Kinect "teardown" conducted by TechInsights, a division of United Business Media, Kinect costs a mere $56 in materials. That's nearly a $100 markup at retail. I guess they had to pay for their 500 million dollar marketing campaign somehow.

Passing cost onto the consumer isn't anything new with Microsoft. Just last week we reported that the Xbox LIVE price increase was due to Microsoft securing exclusives to the service.

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