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Microsoft prices Kinect at $150: Too high, too low or just right?

By | July 20, 2010, 11:12am PDT

The rumors were true: Microsoft is pricing its Kinect sensor add-on for the Xbox at $150.

(For that $149.99, existing Xbox 360 console owners can get the Kinect device plus a copy of Kinnect Adventures, to be precise, company officials said on July 20.)

Microsoft also announced a bundle of the new Xbox 360 4GB console, Kinect, and Kinect Adventures will be available for $299.99. The new, black-matte Xbox 4GB console begins shipping August 3 in the U.S. and is available by itself for $199.99.

Some Microsoft analysts are skeptical that Microsoft will be able to sell multiple millions of Kinect sensors for $150. They argue the price should have been considerably lower (closer to $100 or so), given the fact it is an add-on. Also, as CNBC noted in a story earlier this week, Kinect will have 15 supporting titles from Microsoft and selected partners when it launches on November 4, “which won’t be a big incentive for people who don’t own an Xbox 360 or PlayStation 3 to pick one up.” (The Kinect titles will be $49.99 each.)

Microsoft CEO Steve Ballmer said earlier this year that he considered Kinect to be Microsoft’s most exciting product launch in calendar 2010.

So what’s your take?

Poll

Did Microsoft make a misstep with its Kinect pricing?

As I’ve said many times before, I think Microsoft is overemphasizing its consumer products to the detriment of its money-making (and high-margin) business ones. I think this whole “Consumerization of IT” notion is overrated. You?

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Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

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RE: Microsoft prices Kinect at $150: Too high, too low or just right?
tomlin21-24319035676893835085146735905770 11th Oct
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Given what this technology can do and how its is pretty ground breaking I think $150 is about right. If you want ti cheaper then use Bing cash back.
@Loverock Davidson
Is it going to be for sale before the 31st?? If not then your later statement is dumb and wrong. Bing cash back ends this month!!
I might have to wait to get this until there are more game titles available for it (hopefully a fitness one!). There's always the few that are available at launch time, but aren't that great. Hopefully by the time I'm ready to buy, gamestop will have some used ones for around $120 or so?
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built into one unit. The real magic actually happens in software running on the console, and not in the Kinect webcam itself.

As long as it proves to be as sensitive as the PS2 EyeToy device, casual gamers *might* buy it, and the My Fitness Instructor title that's set to be a launch title from UbiSoft (they released it for Wii with a webcam a while back) may draw some balance board fanatics in. I don't see Kinect taking off the same way the Wii Remote sold people on Nintendo's system. Then again, controller-less motion control has always been a low-selling niche (remember the Genesis Activator? Yeah, most people don't want to remember it).
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Floppy the flop flopping flopper...
i8thecat Updated - 20th Jul 2010
This one is heading for the flop bin...

Can't wait for the boxing game... Gonna see some black eyes and lawsuits...

The first rule of Fight Club is that you don't do it in front of a Kinect sensor... LOL

But seriously.. The thing most missing in my life is having cameras aimed directly at me from the TV, connected to the internet and Microsoft...

And the Wii has physical feedback... Kinect does not.
@i8thecat
Going to have to disagree with you there. The Kinect may indeed be the future of gaming, but it will definitely be the input device of the future. As an enterprise product, it will be pretty special.
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This is going to be a major FAIL.
condelirios 20th Jul 2010
It is too expensive... period. end of sentence
Depends on how much the hardware actually cost Microsoft. You have to consider the R&D on this also, it really looks like they put a lot into it. I think it is cool technology and honestly expected a higher price.
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It isn't as if this is all that new...
Snooki_smoosh_smoosh 20th Jul 2010
@SteelTrepid... after all Sony Playstation had the eye toy, albeit not what MSFT is touting kinect as being, but it is really just an improved eyetoy, which you can find for $30 now days.
NT
I'll pass on the cameras in my home that can presumably be activated by a 3rd party
I bet most parents will as well.
FAIL.
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$150 for a slightly improved eye toy?
Snooki_smoosh_smoosh 20th Jul 2010
I think not. As much as ABAers b*tch about the price of Apple Products, you would swear the 360 was an Apple Product. Non-standard connectors, over priced hardware, lacking features in the 360 original like builtin wifi and WPA2 support.
@JM1981 BS! Non standard connectors for what? That non-standard HDMI connector? Or maybe that non-standard USB connector? And no, the original 360 didn't lack features, it just didn't force you to buy things that weren't needed... unlike some other *cough*Sony*cough* console manufacturer.

But if you want to talk lack of features, then maybe you want to go check out the specs of the PS3 20GB version. Or maybe you want to look at every version of the PS3 with less features than versions before it. Hardware BC, Software BC, SD reader, SACD support, Other OS support, half the USB connectors... all removed. If you're a trolling PS3 fanboy, then you FAIL!
"The new, black-matte Xbox 4GB console begins shipping August 3 in the U.S. and is available by itself for $199.99."

I don't know about you but I wouldn't pay $199.99 for a 4GB anything. Don't you mean 250GB?

UPDATE. Ah, OK, 4GB of MEMORY, not storage. Hrmm, that's a different story. Not interested in Kinect though. I wonder if the wi-fi is WPA2 supported? I guess I should quit being a lazy fart and go look wink
@fairlane32

WPA2 PSK and TKIP... suggest PSK. TKIP is slightly outdated.
Perfect price for a truly innovative product. I'm surprised it's that inexpensive. Go MS!
It's not expensive if you considder the technology behind. I mean, today games cost half of Kinect. So this is really not an issue.

I will definitly buy this thing at day one. Not even because of the games, but it's amazing if you can control your xbox with your hands and voice.
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It will start out at $150.00. Sales will be fairly brisk because there are a lot of X-Box 360 owners out there who will want it. Christmas will happen and sales will be good. After Christmas, sales will slump. I predict the price will be $99.99 within a year.
They've priced it so only "enthusiasts" will be buying it.

The games publishers will, at first, say it's "The way of the future" and hope for a bonanza, and then they'll notice that as it's only "enthusiasts" that bought them, there won't be enough of them around to warrant making a AAA title specifically for it. Folks will see that there are no specific games for it, and not bother buying it. It's a positive feedback loop (http://en.wikipedia.org/wiki/Positive_feedback_loop).

MS really should have sat on it till their next gen XBox, and then released it as standard kit for that. If they feel they really need to make it successful for the current gen XBox, then they need to basically give it away and hope enough folks bother getting one to get it to critical mass.
If I am the controller, why do I have to pay 150 for Kinect?
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RE: Microsoft prices Kinect at $150: Too high, too low or just right?
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RE: Microsoft prices Kinect at $150: Too high, too low or just right?
tomlin21-24319035676893835085146735905770 11th Oct
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