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

1 min read

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

Check Also

Microsoft adds dedicated emoji and Office keys to new keyboard range

Moving with the times when people would rather express themselves with an emoji than actua…