Kinect materials cost around $56 - report

PrimeSense tech "a huge design win" for Israeli company

The costs of the materials inside Microsoft's Kinect motion controller add up to around $56, according to a report.

A piece by EE Times breaks down the components of the latest peripheral from Microsoft, noting that the PrimeSense technology used within the device costs around $17.

"Basically, the strength of the design is the huge design win for the Israeli fabless company PrimeSense," said Allan Yogasingam, a technical marketing manager at UBM TechInsights. "They've provided the most innovative portion of the Kinect with their image processor, audio and video interface."

"The future applications of this technology could be fascinating. I can see this being incorporated into televisions - allowing users to change the channel by waving their hand, essentially replacing the remote control."

PrimeSense's technology is available for other hardware manufacturers, although Microsoft has the exclusive deal for home videogame consoles.

The Kinect hardware sells for $149 in the US and £129 in the UK.

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Latest comments (11)

Kevin Clark-Patterson Lecturer in Games Development, Lancaster and Morecambe College7 years ago
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Josef Brett Animator 7 years ago
Would be interesting to see the R & D costs!
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Germán Vázquez Executive Producer, Neggi Studio7 years ago
The good thing of this is that MS is making money on each Kinect sold so there is even more incentive for them to make it a huge hit and not a 32X fiasco. I see this as more incentives and tools support for developers to make the most original and fun games for Kinect.
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Private Industry 7 years ago
I always have the feeling MS is just looking at the short term gain. Get the thing out for 100 bucks. Sure you make less profit with it, but at the end more people will buy it. The more people buy it the more genuine interest have developers and publishers in doing something for it. If they sell 4 million whats the realistic outlook for game sales when you bring something out that maybe 10% will pick up the game?

Sure R&D and so on factors into the calculation, but if they want to be still here with the 360 and Kinect in 3 years (maximum because no way 360 is still supported in 5 years as they say) launch it at 100 bucks and get it into as many homes as possible and lower the price by 20 or 30 bucks next Christmas and remain than at this price for the rest of the lifespan.
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Andrew Goodchild Studying development, Train2Game7 years ago
@Walter. They may not make any profit on $100.. If materials cost $56, it still costs money to put those pieces together, to have warehouses to store parts and finished units, the transport, and the cut the retailers and wholesalers/distributers take. If just the materials cost nearly half of the price, actually to me that suggests the margins are very low, not high short high profits.
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Patrick Frost QA Project Monitor 7 years ago
@Werner - I agree with Andrew. Also considering all of MS's posturing they look to be using this as a trial for implication of the workings of the device in all other aspects of their business. MS as a company whole seem to be very excited about as it would give them a genuine leg up on Apple once developed a bit.
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Private Industry 7 years ago
What I see is the 360 will be soon again in third place, as it stands Kinect will not give them amazing sales boosts in Europe or Japan to stay in second, and with the next console they need to launch with something like Kinect 2.0 to get into the casual market earlier if they don`t want to be again last. For that they need to get Kinect in as many homes as possible now to get people hocked on it and developers to make games for the device that makes them money except of cheap shovelware so they jump on the next one once it launches. If the devs and publishers don`t make money now with Kinect why should they support the next version and invest money into development when they can do other things more likely to make money? The more people who have Kinect the more likely it is that devs sell the games made for it. So if you plan on using an updated device for the next console you better make sure it sells now even if that means to take a hit in the short term and make less or nor profit right now. It`s about the long term gain and not the short term gain to make profit right now and the 360 does not have much time left unless of course they don`t plan on using Kinect or an updated version of Kinect with the next console at launch, in that case you just care to make profit with it now and not what comes next.
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Josef Brett Animator 7 years ago
Werner, just to pick up a point in your last post - "the 360 will soon again be in third place". It's never been in third place has it? I thought it's always been in second (well, except for the short jump it had on the Wii, where it was first in a one horse race)!

I'm guessing as well, that you prefer the PS3...?
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Private Industry 7 years ago
I wanted so say MS will be soon again third with the 360 in regards to the place they had last gen.

well i have a preference towards sony 1st party games compared to ms 1st party games.

Edited 1 times. Last edit by Private on 15th November 2010 10:03pm

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Josef Brett Animator 7 years ago
I see.

MS don't really have any ist party games do they?!!
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Ben Hewett Studying MA Philosophy, University of Birmingham7 years ago
Werner: didn't MS finish in 2nd place last gen? (PS2, Xbox, GC). I don't think they've ever been in third place..
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