The lights are on
Microsoft's Kinect, which is riding a nice wave of momentum from its successful launch last week, is a relative rarity in the world of video games -- a piece of hardware that is sold for more than its cost to produce at launch.According to the teardown experts at UBM TechInsights, each Kinect unit -- which retails for $150 -- costs around $56 to produce. UBM says the low cost of production is due to the ingenuity of PrimeSense, a Israeli company that provides the Kinect with image processing, audio, and video by way of proprietary software, four microphones, an infrared camera, and two image sensors."The strength of the design is the huge design win for the Israeli company PrimeSense," said Allan Yogasingam, a technical marketing manager at UBM TechInsights. "They’ve provided the most innovative portion of the Kinect with their image processor, audio and video interface."This is also a huge win for Microsoft, which struggled with the high production costs of the original Xbox -- a mistake it has gone out of its way to correct in this generation.
Source: EE Times
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wow. that's all I have to say.
And the game discs cost less than a few bucks to manufacture, too...of course they're making mad profits.
This means a huge window for price drops and holiday sales. I think i see what Microsoft is doing here.
Yeah to manufacture one, now add in the funds for research for the tech in the first place and you got a big hole to fill.
Also, Israel is always awesome at everything they do.
and a game disc costs a few cents to manufacture and burn the game onto, but you have to pay the devs(and unfortunately for most, publishers). its to make profits and offset research and development costs. stop complaining
Your paying for more then just the hardware that is needed to put it together. There are thousands of man hours in R&D that gos into a gaming system or add-on in this case that also has to be accounted for.
Well, it might not take that much in production, but development, research, and profit. I mean face it, who would sell something with out getting a little profit anyway? I know I sure the f*** wouldn't
Is anyone honestly surprised that they're making twice as much money as it takes to make the actual product?
This is news why , toy makers have been doing the same thing for years. take the cabbage patch dolls 10 bucks to make but sold at retail for 125.00. all companies look for a way to make a buck without having to invest more than they have to. come how is this news.
Means they made smart decisions on the production front, hopefully in terms of longevity it will hold up as well.
Anyone that may scream about Microsoft is being greedy for the price mark up obviously isn't aware of the average mark up on every day consumer items, and of course is discounting research spent etc etc.
Now figure in research and development and marketing, and the price is really about right for what Microsoft is having to spend to move this thing.
Well, if it works well and makes them money, as long as they put out great games for casual and hardcore alike, f@ck it, good for them.
"This is also a huge win for Microsoft, which struggled with the high production costs of the original Xbox -- a mistake it has gone out of its way to correct in this generation."
Yeah, but it didn't work out to well for them. They released the 360 way before it was ready for the spot light, sat by and watched millions of consoles bite the dust, and had to shell out 3 billion for repairs. I have to give them credit for stepping up though, and taking responsibility.
Yeh I think if it costs that little to make then it shouldn't cost $150 to buy it..
"This is also a huge win for Microsoft, which struggled with the high production costs of the original Xbox -- a mistake it has gone out of its way to correct in this generation" yeah making the xbox 360 and it's endless hardware failures
that's okay at least it doesn't cost over a $100.
Remember when I said "microsoft loves their money"?