Ever wondered exactly how much the little bits and pieces within the Kinect cost, compared to the $150 you paid at the store for it? Well according to UBM TechInsights, which happened to take the Kinect apart piece by piece and analyze every single part that goes into making the Kinect what it is. As it turns out, the Kinect packs $56 worth of hardware with the most expensive bit being a $17 PrimeSense motion detection system that includes the cameras, processor, and microphones all in one figure.
While this would seem that the Kinect is giving Microsoft quite a large profit every time one is sold, it actually is far from it. There are no official figures to go off of but we can easily estimate that, while still making some sort of profit, the actual figure is much lower. The shipping cost of each unit, the labor cost of each one (even in a factory of machines it requires maintenance), the no doubt long and expensive development phase to name a few. But perhaps one of the most expensive price tag will rest in the marketing category. Especially considering everywhere you look there is Kinect marketing. Plus the fact that every new piece of technology released is essentially starting in a hole as far as profit is concerned thanks to the pre-market costs.
Source: EETimesRelated Articles for this post below: