Sunday, September 25, 2011
The Story Behind Kinect, Microsoft's Newest Billion Dollar Business
The Story Behind Kinect, Microsoft's Newest Billion Dollar Business
Shortly after Kinect launched on November 4th, Microsoft revealed that it was selling about 100,000 units per day, and expected to sell 5 million by the end of the year. In fact, Microsoft shipped 8 million of them to retailers. At $149 a pop, that means Kinect contributed about $1.2 billion in revenue in less than a single quarter. And because each Kinect costs only about $59 to make (according to tear down estimates), that suggests it's a profitable business as well.
Shortly after Kinect launched on November 4th, Microsoft revealed that it was selling about 100,000 units per day, and expected to sell 5 million by the end of the year. In fact, Microsoft shipped 8 million of them to retailers. At $149 a pop, that means Kinect contributed about $1.2 billion in revenue in less than a single quarter. And because each Kinect costs only about $59 to make (according to tear down estimates), that suggests it's a profitable business as well.
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