Rumor: Kinect units cost $150 to manufacture

[Ares]

Rumour: Kinect units cost $150 to manufacture
June 21st, 2010 @ 18:53
By Joe Anderson


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

Source: VG247

 

[GlocksRock]

a premium version of the kinect... I wonder what it offers over the standard version.

 

[BoredSysAdmin]

I don't know and doubt validity of this rumor - The thing looks like piece of plastic with 3 web cams... how expensive the hardware could be??

 

[Ares]

R&D might also be factored into the cost, along with MS buying Primesense which holds patents on the tech being used in the Kinect

 

[GlocksRock]

Sounds to me like they are about to experience fail all over again.

 

[Nugu]

Most of their cost would be in the software aspect of it I think. That's where almost all of their tracking and interfacing will be. (or should be, from the sound of the reports on the lack lusterness) The audio part of the kinect should cost them next to nothing, so that leaves the camera part - I think there was a thermal camera in it? What do those cost?

Either way I agree, this will be a big money dump.

 

[Audioholics]

I dunno, I can't wait to pay money so I can act like a monkey, flailing my arms and legs in front of my television set....

 

[Shock]

They should scrap this and go with the glowy sex toy-esque motion controllers like the PS3 has. Everyone knows sex sells.

 

[GlocksRock]

Looks like the price tag has been confirmed:

http://www.engadget.com/2010/06/21/kinect-for-xbox-360-now-on-sale-for-150-at-microsofts-own-o/

 

[Ares]

If they are selling it for $150 and it costs $150 to make where's the profit?

 

[GlocksRock]

If they are selling it for $150 and it costs $150 to make where's the profit?

In the software that they sell to use it. Just like printer manufacturers often sell the printers at a loss since they know they will make lots of money selling ink.

 

[BoredSysAdmin]

let me quote couple of comment to original article here:
http://www.develop-online.net/news/35198/Source-pins-Kinect-manufacturing-costs-to-150

Industry first high resolution time of flight sensor
High power, ultra high speed LED
Wall transformer
Internal transformer
High power ultra high precision timing and control circuit
Ultra fast buffer memory
Vision analysis and parsing pre-processors
USB controllers and additional caches
Casing
Cooling
Cabling
Mounting
Lensing
Multi-array microphone
Actuators
Packaging
Shipping
Retailer take (high for peripherals)
Licensing
Assembly
What else? Oh, yeah, a regular high resolution high frame rate RGB Web Cam.
Yeah, I can see the costs mounting - it's a pickle alright.

This article is rubbish. Microsoft bought out another company called 3DV Systems and not did not acquire Prime Sense. They did a deal with Prime Sense, but they did not acquire them, so this information is bogus.

There initial cost and there are reoccurring costs per each device.
R&D, software and cost of purchase of company to assist with technology are initial cost only, not reoccurring ones, therefore are should be counted as manufacturing costs....

However per device licensing and cost of hardware are reoccurring and I'd bet my last dollar these are WAY below article quoted $150

Just my 2c

 

[Ares]

In the software that they sell to use it. Just like printer manufacturers often sell the printers at a loss since they know they will make lots of money selling ink.

Well their initial game offerings are not impressive it seems to be geared towards casual gaming. Most casual gamers own a Wii already so I don't see many of them running out and picking up an Xbox 360 for $199-$299 and paying $150 extra for the Kintect but that's JMO.

 

[GlocksRock]

I agree, but that's where the real money is made... eventually more titles will come out, but they need to be good if they want the kinect to sell. I already have a Wii, 360, and a PS3... I don't plan on buying Move for the PS3, and $150 is a lot to shell out for the kinect if all the games for it suck.