Problem with Kinect is the release games.
I have the Kinect, very fun, but it's not CURRENTLY worth the money, it only has a few games which almost none appeal to me. BUT when the games for Kinect start flowing in, I can tell that I have not wasted any money, this thing has so much potential, as soon as more games come.
Same goes with most things, you pay a lot for something, but without the extras, its worth nothing. An example would be the iPad, does fuck nothing for $500, but spend $50 and you can get insane awesome apps that make the whole thing well worth it.
If you bought the xbox 360 when it first came out, not many games at all, like 15. Some would have said it is in no way worth it to spend $400 on something with only a few games, but a few months later you would have seen that it's well worth it.
Nothing new here. Your shoes also cost less than 10 bucks to make but you pay 100+ dollars for them. ipod shuffles cost apple ~ 20 bucks.
That's bullshit; consoles and accessories should cost MORE to make than what they go for in the store. Like they should spend $250 on supplies to make it, and then sell it for $150 in the stores. They make the money off the games, make quality systems and accessories that can last a while.
[QUOTE=W00tbeer1;26044825]That's bullshit; consoles and accessories should cost MORE to make than what they go for in the store. Like they should spend $250 on supplies to make it, and then sell it for $150 in the stores. They make the money off the games, make quality systems and accessories that can last a while.[/QUOTE]
It's reasons like that is why companies go bust.
I did the math and broke it all down... Assuming the average profit margin in page 1 is 40%...
$56 to build the device +40% Profit Margin (average) for Microsoft: $78.4
$78.4 for Microsoft +40% Profit Margin for Supplier for shipping, etc: $109.76
$109.76 for Microsoft & Supplier +40% Margin for Retailer: $153.67 (round to $150)
Microsoft makes $22.4 per unit sold.
Supplier makes $31.36 per unit sold.
Retailer makes $40.24 per unit sold.
The retailer is making almost twice as much as the company that made the damn product. And people are calling MICROSOFT greedy. What the fuck.
yay capitalism
The 94 dollars pay for shipping, labor, and the technology behind the device.
You guys are not looking at this right, you are concerned about video game hardware manufacturing prices? Have any of you seen that chart showing pharmacies making common pills for a few cents?
[QUOTE=Telepethi;26048216]I did the math and broke it all down... Assuming the average profit margin in page 1 is 40%...
$56 to build the device +40% Profit Margin (average) for Microsoft: $78.4
$78.4 for Microsoft +40% Profit Margin for Supplier for shipping, etc: $109.76
$109.76 for Microsoft & Supplier +40% Margin for Retailer: $153.67 (round to $150)
Microsoft makes $22.4 per unit sold.
Supplier makes $31.36 per unit sold.
Retailer makes $40.24 per unit sold.
The retailer is making almost twice as much as the company that made the damn product. And people are calling MICROSOFT greedy. What the fuck.[/QUOTE]
Yeah but then the retailer has to pay employees and rent and such, to be honest, they aren't exceptionally greedy for a company.
people will pretend to care then buy the fucking thing for their little brats for christmas
Holy shit! A company is trying to turn a profit!?
STOP THE FUCKING PRESSES!
If you don't like the price, don't buy it! It doesn't take a genius to realize this.
[QUOTE=DSG;26048727]people will pretend to care then buy the fucking thing for their little brats for christmas[/QUOTE]
all those poor people that didnt use condoms
Uh, not a surprise at all, Microsoft has to pay their CEO's and whatnot who have extremely high salary's, not to mention the factory's that produce the product must get paid somehow.
Apple's products are good examples of this, it costs roughly 20 dollars to make an ipod, and yet they sell it for 200 dollars.
[QUOTE=sloppy_joes;26048703]Yeah but then the retailer has to pay employees and rent and such, to be honest, they aren't exceptionally greedy for a company.[/QUOTE]
And Microsoft and the suppliers don't?
What, are both of those companies working on slave labour? Or did they invent autonomous robots that can drive trucks and perform feedback tests without us knowing about it?
Microsoft has employees too. More than the retail store down the street, and higher paid ones.
The Suppliers also has employees.
Microsoft still has to pay rent on the factories and warehouses they're using. They have to pay for electricity, water, and other utilities. Repairing broken machinery, etc. Microsoft probably has the most financial input.
The suppliers have to maintain and fuel trucks ranging from typical lorries to semi trucks. Maybe even railways and planes depending on where they're shipping. Their employees are paid more than the guy down the street selling you the game. They also have to rent large warehouses, depots, offices, etc.
Gamestop sells you the game. They have a small store, probably 25x25 feet or less. Their employees are paid minimum wage or close to it.
Who pays more?
Man, if you're upset about the price, don't buy it. They have the right to price it however they want, and when did you ever expect to see a company that does not try to make the largest profit possible?
[QUOTE=Telepethi;26058253]And Microsoft and the suppliers don't?
What, are both of those companies working on slave labour? Or did they invent autonomous robots that can drive trucks and perform feedback tests without us knowing about it?
Microsoft has employees too. More than the retail store down the street, and higher paid ones.
The Suppliers also has employees.
Microsoft still has to pay rent on the factories and warehouses they're using. They have to pay for electricity, water, and other utilities. Repairing broken machinery, etc. Microsoft probably has the most financial input.
The suppliers have to maintain and fuel trucks ranging from typical lorries to semi trucks. Maybe even railways and planes depending on where they're shipping. Their employees are paid more than the guy down the street selling you the game. They also have to rent large warehouses, depots, offices, etc.
Gamestop sells you the game. They have a small store, probably 25x25 feet or less. Their employees are paid minimum wage or close to it.
Who pays more?[/QUOTE]
Except microsoft has multiple retailers working for them, and when the prices go down it's because the retailers put the prices down.
The retailers aren't making more money than microsoft.
Also, we assume the 20 dollars microsoft makes is mostly profit, whereas we assume the retailer makes 40 dollars in revenue.
This just in you guys
Sale price = manufacturing costs × ~3
Though this applies only to mass produced products.
whoever actually bought a kinect probably has far more reasons to be angry anyway
like having paid any money at all for such a shitty product
[QUOTE=wingless;26047600]It's reasons like that is why companies go bust.[/QUOTE]
The games cost $.50 to make and they sell for $60. I feel they would make more money if they make their products last longer, therefore the customer can buy more games.
[QUOTE=NO ONE;26022959]Still cheaper than anything Apple sells.
But yet somehow, more expensive than the Playstation Move. weird.[/QUOTE]
Uhm yeah, Apple sells multi use appliances, get out of here bandwagon hater.
[editline]14th November 2010[/editline]
[QUOTE=W00tbeer1;26069562]The games cost $.50 to make and they sell for $60. I feel they would make more money if they make their products last longer, therefore the customer can buy more games.[/QUOTE]
The physical representation of a game costs $.50 to make, but don't forget marketing and development costs
which...is a lot usually.
[QUOTE=Itachi_Crow;26062976]whoever actually bought a kinect probably has far more reasons to be angry anyway
like having paid any money at all for such a shitty product[/QUOTE]
It's not that bad
I actually like it
[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]
Lol what. There's no such thing as too large a margin to justify for an entirely unnecessary product like Kinect. People who buy it are entirely at fault, not the company.
ITT: Nobody in this thread understands economics or has any general business since whatsoever.
[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 understand medicines you take can have up to a 25000% up charge right?
[QUOTE=newbz;26082657]ITT: Nobody in this thread understands economics or has any general business since whatsoever.[/QUOTE]
Since when?
I sold some stuff a few days ago doesn't that count as business?
fuck that
ill play with my [b]Mother fuckin Ps2 EyeToy[/b]
:smug:
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