Originally Posted by
Diatribal Deity
All the "predictions" aside. The success of Kinect on Xbox 360 ultimately will probably have little to do with its eventual true overall impact. Sure it is an attempt to boost a bit of video game market share, but ultimately this is more of testing of the waters for potential video conferencing down the road.
Think of this as extended R&D for the technology behind the device. Development cost of each Kinect unit is rumored to be $150 which means after all else is factored in, Microsoft will not make any profit on its individual sale. Yeah, if they sell some gimmicky games they may end up breaking even or making a slight profit.
I remember when Xbox originally launched, Microsoft's only intent was to capture a small share of the lucrative video game market in the long term. They were very aware it would be a rocky road, but new profits would come later. They have a long term approach to everything.
If you are looking at the initial success or failure you are not looking at the whole picture. Ultimately the technology behind Kinect may have very little impact on gaming, but lead to a nice profit as the technology is used in the boardroom and other applications in the future. The small pockets of the average consumer cannot compare to the deep pockets of businesses. To think this whole Kinect overall strategy was not thought out, would not be giving Microsoft (a pretty profitable and successful company) much credit.
I welcome any and all technological releases, as chances are the initial use ultimately will probably not be its legacy. Failure is an option for Microsoft, a company already known to take some pretty big chances.