Kinect’s hardware costs a lot less than its R2000.00 price tag

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Prior to the launch of Kinect, Microsoft said that they would be making a profit on each camera sold. Some snoopy people over at UBM Tech Insights have decided to put that claim to the test. They got hold of a Kinect unit and ripped it to pieces.

By analysing and tracing each component of the Kinect camera, Tech Insights was able to put together a hardware costing for a single unit. It’s quite a lot less than us as end-users wind up paying. Are you surprised? You shouldn’t be.

According to UBM Tech Insights, each Kinect camera costs Microsoft $56 in hardware. That works out to less than R500.00. The most expensive component is a “reference system” which is manufactured by an Israeli company called PrimeSense. That component alone sets Microsoft back $17.

Of course, this is just for the hardware. You’d still need to factor in the labour costs for assembly, transport to suppliers, marketing and royalty fees to third-party hardware manufacturers, of which there are surely quite a few hidden amongst the various components that make up the device.

Source: Kotaku

Last Updated: November 12, 2010

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Miklós Szecsei

I'm a freelance writer who has somehow managed to convince people to pay me to play video games. By day I work a job, but by night and early hours of the morning, I write about video games. The one job provides a living for my family; the other provides a living for my soul. Dramatic, right?

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