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Kinect set to reap $1bn in one year

by Sarah Griffiths on 14 July 2010, 16:03

Tags: Microsoft (NASDAQ:MSFT)

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Moving on up

Microsoft's Kinect could inject a whopping $2bn into the games industry in its first year of release, with up to a quarter of current Xbox 360 owners predicted to invest in the motion gaming device.

The Wall Street Journal reports the company's add-on motion gadget, formerly known as Project Natal, could reap $2bn in its first year of launch, taking into account the price of the device plus games, according to a report by Caris & Company. 

Sandeep Aggarwal, an analyst at the investment bank reportedly believes Microsoft will net over half of the revenue generated itself, predicted to weigh in at over $1bn.

The Kinect peripheral is designed to attach to current Xbox 360s enabling a controller-free gaming experience and is set to hit the shops in time for Christmas, for a hefty $149.

Aggarwal reportedly estimates between 15 percent and 25 percent of current X-Box 360 owners will snap up the new motion sensitive add-on within the first year. With around 40m console owners already, a 15 percent take-up could pull in $900m in hardware sales alone.

Microsoft is said to hope its new add-on will encroach on Nintendo's domination of the family market through its best-selling Wii console and broaden the appeal of the Xbox 360 which is currently the preserve of ‘serious' gamers.

Aggarwal reportedly thinks the company's wish will come true, with the Xbox 360 carving out a larger share of the console market. He forecasts it will sell one million consoles within the first year, accounting for about $300m in revenue, plus realise a boost in the sale of software titles. Microsoft's Xbox Live subscriptions are also predicted to increase on the back of the eagerly-awaited device.



HEXUS Forums :: 11 Comments

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Really?

Can't see the appeal myself, even if there was a Jenna Jameson game!
TheAnimus
Can't see the appeal myself, even if there was a Jenna Jameson game!

Spoiled by the resurrection of Clippy

“It looks like you're trying to hula hoop, would you like help?”
I'm not suprised at this, but I feel the ‘expected’ retail price is a little over what it should be really

What they should do is lower the price, sell more units overall and make more profit from the increased sales.
TheAnimus
Really?

Can't see the appeal myself, even if there was a Jenna Jameson game!

Maybe not Jenna Jameson

How about a game where you have to infiltrate the layer of Anna Chapman?
Lee @ SCAN;1951466
I'm not suprised at this, but I feel the ‘expected’ retail price is a little over what it should be really

What they should do is lower the price, sell more units overall and make more profit from the increased sales.

It'd be interesting to know what the bill of materials cost is but I don't think it's outrageously expensive in context. You could think of it as same as 2x Nintendo Wiimotion plus controllers in terms of cost.