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Microsoft's Kinect Is Under Pressure to Connect .

WSJ Writes: Microsoft faces increasing pressure from investors to show a payoff from those investments, which amounted to $8.7 billion for the fiscal year ended June 30—bigger than the R&D budget for any other tech company.

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online.wsj.com
rebirthofcaos5678d ago

well if they have a "limited stock" in the stores then, it will be hard to meet the 3 mill.

Army_of_Darkness5678d ago (Edited 5678d ago )

Because they don't want to take the chance of over stocking a product that no ones gonna buy after the countless bad talk & reviews;)

MS is taking a chance with kinect, but at the same time not going full out retarded! lol!

MinskyM5678d ago

I don't think they are taking a chance. Jumping on the motion control bandwagon is Microsoft only viable option in the console market.

They have shut down almost all of their first party studios. And they have made it clear they aren't building new Xbox hardware.

Slapping some motion control on the old 360 hardware in hope of emulating Nintendo and the Wii seems like pretty much the only card Microsoft has left this gen.

Killed4Less5678d ago

^^ Yeah I guess great games wouldn't make it worth it?

Like there is some huge disparity between the Xbox and the other consoles.. Maybe you missed the memo but the Xbox isn't the one losing and is the #1 HD console. I love PS3 and all but I'm not living in dream land.

And MS has shuttered 3 dev studios this gen and has created 3 new studios this gen. They still can't compete with Sony first party numbers but you make it sound like they are closing shop and going bankrupt when they are just about to launch their biggest Xbox campaign yet.

DJMarty5678d ago Show
Army_of_Darkness5678d ago

I do not hate you. matter of fact, I prefer windows over mac os anyday... I just don't like the concept of kinect as I did with the ps eyetoy thats all.

morkendo235678d ago

feel sorry for MS investors if this dont pan-out
think they should left motion control to nintendo

PimpHandHappy5678d ago

how many kinects will it take to break even with the ad campaign? 500 million divided by 150 bucks....mmmmm

No FanS Land5678d ago

about 3.3 million units.

but there's also all the R&D to pay and the production costs too.

mrv3215678d ago

There's shipping the amount of retail, etc, the technology and production the time and money spent at game shows... I'd be surprised if they make $50 on each Kinect, I wouldn't be surprised if it's more like $10...

You have the big box, which means retailers may charge more for stocking it.
You have the shipping because the box is big then the shipping is even larger
You have the technology which costs a bit with 3 cameras and all that
You have the power lead which trust me they didn't want this power lead means testing which costs money
The device had to be tested no doubt
The $500 MILLION in adverts
The money spent aquiring patents and lawyers
The money spent aquiring 3DV and other firms with competing product, I mean 3DV was worth like 20 million
The R&D which cost a fair bit
The developement studios required to produce tech demos
The loss of income from transfering studios for core games
The cost at E3
The cost of the cirqe de soleil which is an estimated $10 million

If let's say Microsoft makes $50 from each Kinect sold, the cost without production must easily be $1 billion with all the pre-E3 TV stuff, the artist etc...

You really don't need to do the math to realise that that's equal to basically GTA IV's style and quality.

And don't even think I'm making this up, production is a minor start up cost and if Microsoft aren't in this for the long haul there shares will fall quicker than Rare.

Seriously the fact $1 billion is kind of realistic is a joke, even at $750 million which is the most likely that's still 15 Killzone 2 games... over 5 years, that's a Killzone 2 every 20 weeks... yeah... I know.

Hardcore gamers this is your choice.

You could have a new IP, with the quality, graphics, story, voice acting and over all quality of games like
So yeah, your choice... you could get 2+ AAA games ON TOP of what you aleady get or... Kinect :P

I wouldn't be surprised f Sony spent $75 million simply because a lot of this is mere, hey look we made this tech demo 10 years ago for fun... improve it and sold it... buy it :P

A lot of the games are dualshock 3+ move so little risk, the device probably doesn't cost as much. The shipping is less, the fct they can and will sell more sub controller etc...

I'm not debating which is best untill I try both but which is wisest?

Agent-865678d ago

Plus $150 is the retail price that includes the markup. Say, MS was to make $50 off of every unit (I doubt it would be that much, but let's give them the benefit of the doubt). That would take sales of 10 million units just to break-even with the $500 million marketing budget.

gamingdroid5678d ago (Edited 5678d ago )

Yes, but what none of you accounted for are:

- Kinect is intended to be a platform not just earning money from the hardware, but also software over the lifespan of a Kinect. That includes both retail software sold on disc and dlc.
- Kinect might increase Xbox Live subscription because of a new set of customers.
- Kinect might enable MS to sell more Xbox 360s.
- Research in Kinect technology will be distributed to other areas, including Windows. Some of the research also likely came from Windows already.
- Establishing a new brand
- Investment: If you look at any tech company, you will see a company is worth roughly 15-20 times it annual earning. That means, a $1 million profit yields a $15 million market capitalization. Of course this doesn't always translate, but you get the idea.
- The original Xbox cost a bundle of money, but the business is finally turning a profit in the last few years. Due to the high cost of investment, there aren't likely to be many competitors than can compete in this space as well.

It's much to soon to say if consumers will pick Kinect up, but I wouldn't doubt MS strategy is to sell 12-15 million by the end of 2011 with that sort of investment not mention huge expectations from third party.

btk5677d ago

@mrv321
Bubble for you. Good work on the analysis there.
Comes down to: Do you want 15 Halo quality games, or one crappy Motion controller rushed out the door to attack the Wii.

@gamingdroid
It is a piss poor excuse for a platform - excuse my French. It is a glorified EyeToy for crying out loud. Oprah endorsing it is not going to raise the quality. The whole Kinect saga has more to do with a monopolist who think they can buy a market that they missed in the first place. Investors in MS is not going to be very happy about the whole Kinect thing. Lucky for MS the OS and Office devision as always keeps the boat afloat. If MS was a gaming only company they would have been bankrupt long ago.

+ Show (1) more replyLast reply 5677d ago
rich13er5678d ago

They are also getting a cut of the software sales. the 360 has had a pretty good attach rate. I don;t see that changing with the Kinnect.

Greek God5678d ago ShowReplies(1)
Trroy5678d ago (Edited 5678d ago )

I'm a tad worried for the MS Games Division here.

I hear a distant "Nah nah nah nah, nah nah nah nah, hey hey hey..." going on in the background, like I'm at a football game that has gone horribly wrong for the visiting team.

It would suck if investors forced MS out of the games market, because of Kinect failing, when the 360 has done pretty well otherwise, IMO.

Agent-865678d ago

FROM THE ARTICLE: "Kinect is what the future of gaming looks like," says Tony Key, senior vice president of sales and marketing at Ubisoft Entertainment, a games publisher that has announced five games that use Kinect, including a fitness title and a fighting game that go on sale this week. "This motion-sensing controller technology that they've created is absolutely a breakthrough."

I fear for the future of gaming if this ends up being the case.

Bell Boy5678d ago

Indeed let's hope cheap and shoddy games are not the way the industry goes

AceofStaves5678d ago

If Kinect represents the future of gaming, I have no choice but to stay in the past.

Fine by me.

7412105678d ago

did somebody read this part To be successful, Microsoft needs Kinect to help it sell additional game systems as well as reach existing Xbox 360 users. Some 44.6 million of the consoles have been shipped so far. Sony says it has shipped 41.6 million PlayStation 3s, while Nintendo has shipped 75.9 million Wiis. Microsoft executives said they expect to sell about three million Kinect systems over the holiday season. so they did sell 42 million xbox 360 not 45 ps3 catch up

5678d ago
joeorc5678d ago

yup..exactly what it states here by Microsoft's own words:

http://www.microsoft.com/in...

Notice it's talking about Q4th 2010 + at the end of Q1 2011

Key Performance Indicators (in millions, except unit attach rates)

http://www.microsoft.com/in...

the fact that Sony is in it's 3RD Q @ the end of Sony's 2nd Q sony had already shipped 41.6 million LTD Sony's not Listed their 3RD Q shipment's yet!

the fact of the matter is the GAP is 400,000

Remember while Microsft is on its 1st Q of the new Year Sony is still on it's 3rd Q for 2010!

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20°

Joy Ride Turbo - The Beginning of the End for Xbox Kinect

Joy Ride Turbo launched 10 years ago today. The first title was Xbox Kinect exclusive, yet this sequel failed to support the device at all.

300°

10 of the Biggest Video Game Hardware Failures Ever

Cultured Vultures: "Sadly, not all hardware is created equal, and no matter how much developers might try, some gaming hardware just fails to hit the mark. We’ve compiled a list of 10 gaming hardware fails, and boy did some fail hard."

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culturedvultures.com
Knightofelemia1580d ago

I would label the Power Glove, Kinect, and that Tony Hawk skateboard more as hardware addons hardware failure would be like the Virtual Boy and one day Stadia.

Magog1580d ago

Kinect was bundled with every Xbox One and inflated the price on an already underpowered and low RAM machine so for the One it wasn't an accessory as much as a white elephant.

CaptainHenry9161580d ago (Edited 1580d ago )

Definitely the RROD but that power glove had a lot of issues as well. The Kinect just didn't work

1580d ago
CrimsonWing691579d ago

Hardware add-ons are more like RAM or a video card, basically components that enhance capabilities or performance of the computer.

If you really want to get technical the Kinect is more of a peripheral device, kind of like a keyboard or mouse to a computer.

ThatsGaming1579d ago

The person in this article obviously is not up on their gaming history....

Sega Saturn, Sega Dreamcast, Coleco Gemini, Commodore 128, Commodore Amiga, Atari 5200, Atari 7800 were all massive failures and in most cases cost their companies participating in future gaming generations.

Gamer791579d ago

Sega saturn (successful in Japan) and dreamcast were not failures.
Seems like you're not up on you're gaming history

septemberindecember1579d ago

@Gamer79

How in the world are the Sega Saturn and Dreamcast not seen as failures? They both sold around 8M each, which is much lower than the ~30M that the Genesis had sold before it, and even the Master System before that. They were both the worst selling consoles in their respective generation (PS1, N64 outsold Saturn, PS2, GC, and Xbox outsold Dreamcast). Both of the consoles were incredibly short lived. The Saturn was discontinued in every territory but Japan after just three years. In Japan the console was discontinued after six years. Meanwhile the Dreamcast was discontinued worldwide in 2001 after launching in most territories in 1999 and in Japan in 1998. The failure of the Saturn and Dreamcast lead to Sega pulling out of the hardware market. Which, by the way, all of this occurred when Sega was massively dropping the price of their consoles quickly to compete. Sega was hemorrhaging money at this point.

None of this indicates a successful console. Saying the Saturn was a success because it did better in Japan is like saying the Vita is a success (they both sold around the same amount of units in Japan). Even the Wii U outsold these consoles worldwide.

Magog1580d ago

The picture should be the 360 RROD. When I think of gaming hardware failures that's what springs to mind. Kinect and it's bundled price tag definitely hobbled the already underpowered Xbox One though for sure so I would give it a close second place.

porkChop1580d ago (Edited 1580d ago )

That's not what the author means by failures. It's about hardware that failed in terms of sales (Wii U) or just failed to deliver on its promise (Kinect).

Magog1580d ago (Edited 1580d ago )

Given that the 360 had a year head start, much easier hardware to develop for, was cheaper, and still ended up in third place I think it qualifies especially when you factor in the frustration and huge losses incurred by RROD.

porkChop1579d ago

Selling over 80 million consoles isn't a sales flop. We get it, you don't like Xbox, but that doesn't mean the 360 is suddenly a failure.

Rhythmattic1579d ago

Porky....
You know how many people I know bought a 2nd or third 360 due to RROD? Even when MS had to confront the issue with replacement systems, my mates couldn't wait for even the turnaround of sending it in, and waiting for a replacement.,,..,..
If that's how you consider it a win... OK.. but so is having 5 , of which 3 don't function.... Its a win win....mwhahahahaha

porkChop1579d ago

"my mates couldn't wait for even the turnaround of sending it in"

You're acting like it would take months. When I sent my 360 in I got a new one literally 5 days later. As soon as MS had tracking confirmation that you sent yours, they'd send a new one to you the same day. No one is going to spend hundreds to buy a new console instead of waiting a week. I swear you guys pull some of the dumbest shit out of nowhere and think people will actually believe it.

Regardless, none of this changes the fact that this isn't what the article is even about.

Rhythmattic1578d ago (Edited 1578d ago )

Porky
"You're acting like it would take months"
Sometimes it could.. FFS.. 'Strya here...
Best turnaround I reckon was 2-3 weeks.....
Either way, My mates experiences still exist.. So Sorry, no point trying to earn Xbox Achievements when it doesn't feature in what was a situation you never dealt with,,,,
3 of my friends would disagree (overall, 10 extra Xboxes purchased)
Regardless.. MS sold a lot of 360's that was due to this reason.. That is sales. Fact

"none of this changes the fact that this isn't what the article is even about."
Headline says HELLO !
Oh and "Sadly, not all hardware is created equal," that's enough to pass this on without taking your article bias into consideration.....
As for the rest.... Ok.. But you've actually gone out of your way to give MS a Pass... Fap on.

+ Show (2) more repliesLast reply 1578d ago
Aloymetal1579d ago (Edited 1579d ago )

Yup, and because of that big fiasco MS had to fork out 1 billion but knowing them I think they're very proud of the 360, it's the only time a MS console reached 80mil+ sales, RROD played a big part of that and a record they will never break again.

Rhythmattic1579d ago (Edited 1579d ago )

So true.. Even when MS accepted they where caught out in the biggest lie of any generation, The wait for a replacement was outweighed by just buying another, and having one be returned as a backup, which, btw, generally failed on first swap.
I own honestly can't believe MS tards are just supporting , or arguing why and what MS did by just dismissing it....

lonewolf101580d ago

Lol I had the Atari Jaguar, surprised its "competition" the 3DO isn't on the list too, both as "popular" as each other.

SullysCigar1580d ago

Lol same. Played the crap out of Aliens Vs Predator and Tempest 2000 .... aaand that's about it really!!

lonewolf101580d ago

Sad but true that was pretty much it.

Kurt Russell1579d ago

Agreed, I never actually saw a 3DO make it to retailers in the UK. At least the Atari Jaguar was sold for around 6 months.

lonewolf101579d ago

It made it to some my brother got one, fared just as well as the Jaguar so most probably hard to find in general.

darthv721579d ago

3do had way better games. Jaguar not so much. Neo Geo sold less than both and yet isnt considered a failure. Go figure.

LWOGaming1580d ago

Stadia is a weird one. It hasn’t sold at all well but in terms of how it works it’s still miles ahead of Xcloud in terms of stability and performance. Xcloud is still a way behind and that needs sorting but it will be in time. Stadia for me is one of those things that will go down as a what could have been moments. With better marketing it could have been a roaring success. I still play it and it remains the best place in my opinion to play CyberPunk 2077. Only platform I have played it on without having any issues at all. The tech is great. The concept is fine. Marketing terrible. Shame really.

Magog1579d ago

The sales model was awful. They should have teamed with an existing player to allow for local and cloud access to games or a gaming subscription service.

LWOGaming1579d ago

It was a strange mess from such a huge company, as I said, as a system it works really well but without gamers it’s nothing. Such a waste,

LWOGaming1580d ago

The Xbox One was Microsoft’s Nintendo Wii U. Undercooked, undersold and just an unholy mess. The thing is with any of these failures is to learn from them and thankfully both Nintendo and Xbox did just that to the benefit of gamers everywhere.

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120°

Pivotal Decisions in Gaming History - Xbox Goes All-In on Kinect

Xbox 360's Kinect had flopped yet Microsoft insisted on mandatory Kinect for Xbox One, driving the price up and alienating their potential customers.

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techstomper.com
darthv721756d ago

the tech was pretty damn good but their focus on making it the centerpiece was not. Had they opted to keep it as a secondary or even tertiary device, it may have found new use for AR/VR.

PrimeVinister1756d ago

Maybe. But they were two early for VR and too late for motion control

1756d ago Replies(2)
Godmars2901756d ago

Their focus was marketing metrics. Information gathering for targeted advertising. Also "event curating" or head counting for special TV events. If MS had had their way with always online and mandatory Kinect pre COVID, as and during it they'd likely be turning into dominant presence in many Western homes. Be getting subsidized by Disney and other streamers as well as the NFL.

Thing was, Kinect as an actual game system, its games, just weren't ready. MS moved on it too soon. Thankfully.

Atticus_finch1756d ago

Sorry but it was incredibly bad for gaming. The thing barely worked as intended and the games were broken shovelware. And let's not forget all the lies from Xbox to try and sell it. What happened to Milo?
It's like Xbox it's a perpetual lying machine.

PrimeVinister1756d ago

I had almost forgotten about Milo. It looks so unbelievable in retrospect. How did anyone believe it?!

+ Show (2) more repliesLast reply 1756d ago
TheEnigma3131756d ago

Kinect requirement, TV focused, DRM, and $100 buried Xbone before it even stared.

PrimeVinister1756d ago (Edited 1756d ago )

I think Kinect was the worst of the bunch. They reversed DRM overnight and try to play down the TV stuff when they realised it made them look disinterested in gaming.

Kinect stuck around for six months, preventing sales and making more and more people upset when they dropped the Kinect and the price.

Atticus_finch1756d ago

Don't forget the inferior hardware which affects their game development to this day.
And the constant boasting and lying that hasn't change very much to this day.

kayoss1756d ago

I was kind of excited for the kinect. It had potential. That was until i tried it at one of their Microsoft store. The thing was so laggy and worker who was there, had no clue what he was doing. It kind of made rethink about buying an Xbox One with Kinect.

PrimeVinister1756d ago

I had already been turned off of the idea by Kinect for 360. Even when it worked, the games were bad and showed no potential.

Wii made you understand what they were going to do with it within about 10 seconds of Wii Sports. It went on to become a bit of a joke but at least it worked and had a purpose.

Thundercat771756d ago

The damage to the Xbox brand was so hard that til this day they are just the last place brand in the market.

PrimeVinister1756d ago

Totally. They haven't been really all that relevant since.

Godmars2901756d ago

That has to do with repeatedly failing, having to reaffirm only to again fail at creating a competent flow of decent games.

@PrimeVinister:
Until Game Pass and BC are mentioned. Only for the point to be missed.

kayoss1756d ago

thats because they dont know what they want to be. A gaming console, Television, or a gaming service?

Godmars2901756d ago

@kayoss:
They wanted, expected, to be Steam. To have everyone coming to them and paying for the privilege. That's the exact mentality on display when they tried to push always online.

brewin1755d ago

Its sad because the Xbox one version of Kinect was actually pretty solid. Not for motion games, I couldnt care less about those, but for the other features that are now commonplace in the gaming ecosystem. Things like voice control and optional motion features in games. Stuff that Sony did with the PS camera was pretty sweet and they could have done some of that stuff with Kinect.

The tech was pretty sweet when implemented right though. Who remembers the implementation in Dead Rising 3?! You could lure zombies away by saying stuff into the kinect, it was a bit hokey at first, but it actually enhanced the game significantly once you learned all the different voice commands. There was and still is nothing else like that!

The focus on TV seemed to be an issue for people, but the TV pass through had some real potential. They could have had cable companies giving the XBone out instead of cable boxes! I understood what they were trying to do, but they needed to show the games too, and thats where they lost the core gamers. Being able to jump right to a sports event or TV show with out leaving the console was actually a pretty cool thing. I spent many nights switching between NHL games or TV shows and jumping right back into my games seamlessly, just by telling Kinect to do so. It was better than people care to admit, but I loved it!

People say XBone had no games, but on launch I got Dead Rising 3, AC Black Flag, Watch Dogs, Killer Instinct, Battlefield 4, Forza 5, and Ryse. That was actually a pretty solid lineup in hindsight! Then later on it got gems like Quantum Break, Dead Rising 4, Sunset Overdrive, Gears 4 and 5, the Ori games, Rare Replay, Forza Horizon 3/4, State of Decay 2, ReCore (SUPER UNDERRATED GEM), Halo 5, Halo Wars 2, and all the great 3rd party stuff as well! I dare anyone who sat on the Xbox One to go back and give it a shot now.

It was actually a pretty great console all things considered. Yes the PS4 had better 1st party stuff, stuff that MS just couldnt top or even compete with, but there are some really great games that a lot of people missed out on that they would probably really enjoy if they actually played them. Thats why I recommend a Series S and Gamepass to a lot of people, as its a great way to get an awesome lineup pf games for super cheap!

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