One retailer claims the Kinect's $150 price tag has thrown cold water on pre-orders, but high manufacturing costs may not give Microsoft much room to budge.
If the pre-orders are any indication, the Microsoft Kinect may be in trouble. According to the UK retailer, ShopTo, “Pre-orders are very low.”
ShopTo CEO Igor Cipolletta claims that the reason for the low orders is simple enough, the cost. “It’s too high,” Cipolletta said in an interview with Eurogamer.
“We believe that with this current economy it should be around £70 ($105). For £140 ($210) you can buy a Wii.” Cipolletta said.
The price has been a contention for many, but Microsoft has said that the $150 sticker is merely a placeholder, and a decision on the final price has not been reached. It’s a somewhat odd assertion, considering that several retailers, including Microsoft’s own store, have the price listed as $149.99.
Microsoft may be reconsidering how much to charge in wake of the low pre-orders. Competition from the Sony’s Move – which will ship with a game for $99 and have a big head start over the Kinect’s November 4 release date when the Move ships on September 19 – may also affect the decision to lower the cost.
Although it might not be that simple for Microsoft. The website Develop is reporting that the Kinect may actually cost $150 to manufacture, so Microsoft may be forced into the position of limiting its sales by charging a cost that makes no profit, or take a loss in order to compete. Regardless of the final decision, the Kinect is not off to a stellar beginning.
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