Xbox Kinect Costs £35 to Make but still offers value

Posted on Nov 13 2010 - 10:26pm by Richard Sharp

Over the past week many people have been speculating about the Xbox Kinect and the profit Microsoft is likely to make from its latest gaming creation. However it seems those with concern needn’t of worried as each unit only costs £35 to manufacture.

The EETimes report appears to show that the £130 charged in the UK turns quite a profit, however the report does not take into account aspects such as marketing, packaging and research and development.

Microsoft is spending half a billion dollars to promote and market Kinect around the world, this clearly must be paid for so will account for part of the final sale value. The research and development of Kinect has also cost a pretty penny, Microsoft has admitted publicly that it has cost them millions of dollars – you have to speculate to accumulate.

The Xbox 360 Kinect has been flying off the shelves in the UK, retailers are actually struggling to keep up with the demand which goes someway to reassure Microsoft all the money they have invested will give them a fantastic return.

Do you think the Kinect offers good value for money?

1 Comment so far. Feel free to join this conversation.

  1. Real talk November 14, 2010 at 11:55 am - Reply

    I think you have to remember things cost a lot more to develop than they do to make. Imagine the countless hours spent designing, testing then going back to the drawing board to do it again.

    Then as you mention the advertising comes into play. Over all I think kinect is good value.

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