[quote]Microsoft's full-body motion-control tech, the Kinect, was released at the beginning of the month at the $150 price point. The company had previously said that it would sell every Kinect unit at a profit, and now, it appears that margin is in fact quite large.
The Kinect's not so expensive after all, says the report.
According to UBM Tech Insights (via EETimes), who tore apart a Kinect unit and priced each of its components, the per-unit cost of a Kinect is roughly $56.
Of that figure, $17 is attributed to Israeli semiconductor company PrimeSense's "reference system," which includes microphones, processors, and cameras.
Previously, the New York Times reported that the first Kinect prototype cost Microsoft a whopping $30,000, some 200 times the price the company is selling the unit for. In that same report, Microsoft expressed its plan to sell each Kinect unit at a profit.
For a view of the Kinect's full component breakdown, check out the EETimes report.
The Kinect is Microsoft's first dive into the motion-control gaming era popularized by the Nintendo Wii. Microsoft believes it will sell 5 million Kinect units this holiday. Kinect is currently available as a stand-alone product for $150 and in Xbox 360 bundles beginning at $299.
Check out GameSpot's in-depth look at the Kinect for more on the Xbox 360 add-on.[/quote]
[url]http://www.gamespot.com/news/6283956.html?tag=latestheadlines;title;2[/url]
give a fuck
well apparently you all DO give a fuck.
Yeah and then it costs money to ship them and repair the broken ones, on top of that they had to advertise and research and such.
It's not like that ~94 dollars is going straight to microsofts pocket.
Doesn't matter, that is way too large a margin to justify, no matter who you say it goes to.
I'm actually moving out of this house pretty soon, but I still don't have enough boxes to store my stuff in. Keep 'em coming, kids.
I told you guys that the Kinect isn't worth it.
If they don't reduce the price to around $80-90 in a few months, then they're overcharging, but right now a 3x margin on the components (remember they still have to assemble, package and ship) isn't too bad, especially on recouping their R&D costs.
[QUOTE=Harland Mason;26018471]Doesn't matter, that is way too large a margin to justify, no matter who you say it goes to.[/QUOTE]
Most companies have a 10% profit margin, and profit is revenue after expenses.
A 15 dollar profit on an item costing 56 dollars leaves 79 dollars for other expenses including retail markup.
To be honest, considering this is a brand new piece of technology, did you expect any less?
How much do you think your shoes or your clothes cost to make and ship?
Most retailers normally charge about 40% more for a product than they got it for from the supplier.
If it was created for 50 (to make the maths easier) then it is possible for the manufacturer to add on 40% so that would make 70 when the supplier gets them (transport, wages etc.). Then the supplier would add on a similar margin when they sell them to the retailer, so 98. Then the retailer adds on another 40% when sold to the consumer, so 137.2.
The price tag isn't that unreal.
Doesn't really sound that bad to me considering the shipping, and retail markup.
THIS IS NOT AN OUTRAGE
caps
[QUOTE=Harland Mason;26018471]Doesn't matter, that is way too large a margin to justify, no matter who you say it goes to.[/QUOTE]
This guy probably really wants one but can't afford it.
Fun fact: it costs a pizza place $2-3 to make a large deluxe pizza (depending on the quality), including the shipping of ingredients. Yet most charge $12-$18 for one.
No one is in uproar over the pizza places charging 500% markup are they? The one I work at, costs the company $3.14 for a large deluxe to be made yet we charge $17.5 for them on normal non-sale/coupon pricing.
It costs $150 to use the Kinect for 12 seconds.
[QUOTE=sloppy_joes;26018780]This guy probably really wants one but can't afford it.[/QUOTE]
You mad because someone disagrees with you?
[QUOTE=Harland Mason;26018856]You mad because someone disagrees with you?[/QUOTE]
No, there's just no logical reason to think that's an outrageous profit margin at all.
[QUOTE=DrKinkyKinkles;26018809]It costs $150 to use the Kinect for 12 seconds.[/QUOTE]
$150 and your pride.
A company charing more than it took to manufacture a product? Good god that's horrible.
Are Xbox hard drives still like $5 million per GB?
[QUOTE=Orkel;26018867]$150 and your pride.[/QUOTE]
"Bwaaaa! Run to mama!"
[QUOTE=Orkel;26018867]$150 and your pride.[/QUOTE]
Shut the curtains.
Dance like a ballerina.
[QUOTE=Harland Mason;26018471]Doesn't matter, that is way too large a margin to justify, no matter who you say it goes to.[/QUOTE]
a fine example of a fat fucking retard right here folks
Shocking, just like how game discs cost less than a penny.
If this upsets you, better look into what those fancy Nike shoes cost them to make.
[QUOTE=Johnnsen;26019901]If this upsets you, better look into what those fancy Nike shoes cost them to make.[/QUOTE]
$4 and the tears of Indonesian children.
greedy microsoft
[QUOTE=Atchell;26020451]greedy microsoft[/QUOTE]
i agree but why are your posts always like 5 words long
[QUOTE=Harland Mason;26018471]Doesn't matter, that is way too large a margin to justify, no matter who you say it goes to.[/QUOTE]
You aren't that familiar with retail, are you?
[QUOTE=Tuvok;26019546]a fine example of a fat fucking retard right here folks[/QUOTE]
Alt of sloppy joe.
idunno you're being pretty stupid
A standard T-shirt from Abercrombie & Fitch costs around $35
You can buy everything to make it for around $3, probably less, considering they probably own (some of) the means of production as well. That is over 1100% markup.
Welcome to the world, can I take your hat?
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