Kinect Costs Microsoft Only $56

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The Xbox 360’s latest peripheral, the Kinect camera, has been an unquestionable retail success to date. Selling over 2.5 million units in its first month, Microsoft has a lot to be happy about with its debut in motion gaming. It would seem that the Wii was yesterday’s news.

Surprisingly, though, the success so far has come at a pretty high cost for consumers. You will need to spend $150 on top of already owning an Xbox 360 system just to play. For those without a system, they could buy a Xbox 360 4GB console with Kinect for $300. A Xbox 360 250GB Console with Kinect costs $400, but is not currently available at most retail outlets. It is going for nearly $550 online.

With such a high price, it is ironic that Microsoft is reportedly only spending $56 to make the Kinect. That’s roughly a 200 percent mark-up at retail. Of course, shipping and marketing do not come free, but the company has finally found a piece of hardware that does not bleed them money. Instead, they are making quite a healthy profit.