A teardown of the Kinect recently carried out by UBM TechInsights reveals the true value of what’s inside Microsoft’s newly released motion control device. The total cost of the hardware was estimated at $56, around $17 of which can be attributed to its PrimeSense motion detection system, which includes microphones, cameras and processor.
It has been noted, of course, that this number does not figure in manufacturing or marketing costs (the latter of which could easily have taken up the rest of the list price), but it still leaves one to wonder how much of the total $150 Kinect price that Microsoft keeps in their pocket. What percentage of profit is considered acceptable? Given the marketing, I wouldn’t be surprised if they were breaking even and hoping to make their profits on the games.
