Kinect is a failure as a system-seller

Microsoft spent a confirmed $500 million on the Kinect launch. Who knows how much more than that they spent on R&D, manufacturing, etc.

Since Kinect launched...

November 2010: 360 console sales NPD 1.4 million

November 2009: NPD 819,000

Increase of roughly half a million in 360 sales.

December 2010: NPD 1.86 million

December 2009: NPD 1.3 million

Increase of roughly half a million

January 2011: NPD 381,000

January 2010: NPD 332,000

Wow! A whopping increase of 49,000!

So, in the three months since Kinect launched, Microsoft has only increased year-over-year sales by a million consoles, and that's combining three whole months.

To highlight just how bad this is from a financial standpoint, let's imagine if Microsoft took that $500 million and simply turned around and bought as many Xbox 360 Kinect bundles (retail at $299.99) as they could afford. Of course, this isn't what they did, but if they HAD, do you know how many consoles the money could buy? Over 1 1/2 million 360 Kinect bundles. In other words, this has been a pretty horrible investment so far! Microsoft has failed to gain back their marketing budget in over 3 months of increase.

[QUOTE="JohnF111"]The word "Investment" is nothing to see, nothing to see.... I'm guessing about nothing to seeeeee.... worthy income.AncientDozer

I needed a good laugh. Thanks TC.

who cares? I bought Kinect today and it's awesome

Microsoft spent a confirmed $500 million on the Kinect launch. Who knows how much more than that they spent on R&D, manufacturing, etc.

Since Kinect launched...

November 2010: 360 console sales NPD 1.4 million

November 2009: NPD 819,000

Increase of roughly half a million in 360 sales.

December 2010: NPD 1.86 million

December 2009: NPD 1.3 million

Increase of roughly half a million

January 2011: NPD 381,000

January 2010: NPD 332,000

Wow! A whopping increase of 49,000!

So, in the three months since Kinect launched, Microsoft has only increased year-over-year sales by a million consoles, and that's combining three whole months.

To highlight just how bad this is from a financial standpoint, let's imagine if Microsoft took that $500 million and simply turned around and bought as many Xbox 360 Kinect bundles (retail at $299.99) as they could afford. Of course, this isn't what they did, but if they HAD, do you know how many consoles the money could buy? Over 1 1/2 million 360 Kinect bundles. In other words, this has been a pretty horrible investment so far! Microsoft has failed to gain back their marketing budget in over 3 months of increase.

Mrmccormo

Thanks for giving some reality here. it's funny because lems said Kinect will widen the gap between the two consoles and blow away the PS3. That sure did backfire.TintedEyes

unless it was switched if Move did the same you would laud it as a system seller and completely destroying the kinect :roll: I've yet to buy kinect or Move and never will but even I can see that Microsoft has made a hit not suprirsing the TC or you don't see it as long as its Microsoft you never will.

[QUOTE="TintedEyes"]Thanks for giving some reality here. it's funny because lems said Kinect will widen the gap between the two consoles and blow away the PS3. That sure did backfire.WilliamRLBaker

unless it was switched if Move did the same you would laud it as a system seller and completely destroying the kinect :roll: I've yet to buy kinect or Move and never will but even I can see that Microsoft has made a hit not suprirsing the TC or you don't see it as long as its Microsoft you never will.

TC, you have to remember that Kinect has it's own games as well, and a handful have already had over 1 million sales.

[QUOTE="TintedEyes"]Thanks for giving some reality here. it's funny because lems said Kinect will widen the gap between the two consoles and blow away the PS3. That sure did backfire.WilliamRLBaker

unless it was switched if Move did the same you would laud it as a system seller and completely destroying the kinect :roll: I've yet to buy kinect or Move and never will but even I can see that Microsoft has made a hit not suprirsing the TC or you don't see it as long as its Microsoft you never will.

Microsoft spent a confirmed $500 million on the Kinect launch. Who knows how much more than that they spent on R&D, manufacturing, etc.

Since Kinect launched...

November 2010: 360 console sales NPD 1.4 million

November 2009: NPD 819,000

Increase of roughly half a million in 360 sales.

December 2010: NPD 1.86 million

December 2009: NPD 1.3 million

Increase of roughly half a million

January 2011: NPD 381,000

January 2010: NPD 332,000

Wow! A whopping increase of 49,000!

So, in the three months since Kinect launched, Microsoft has only increased year-over-year sales by a million consoles, and that's combining three whole months.

To highlight just how bad this is from a financial standpoint, let's imagine if Microsoft took that $500 million and simply turned around and bought as many Xbox 360 Kinect bundles (retail at $299.99) as they could afford. Of course, this isn't what they did, but if they HAD, do you know how many consoles the money could buy? Over 1 1/2 million 360 Kinect bundles. In other words, this has been a pretty horrible investment so far! Microsoft has failed to gain back their marketing budget in over 3 months of increase.

Mrmccormo

wait a minute. whenever a product or a service increases, i would say thats a good thing. if there was no kinect this past holiday season, then who knows where the 360 would have been. i think kinect did exactly what MS wanted it to do.....increase 360 sales!

TC, you did not really expect january sales to be as high as holiday, did you ?

[QUOTE="WilliamRLBaker"]

[QUOTE="TintedEyes"]Thanks for giving some reality here. it's funny because lems said Kinect will widen the gap between the two consoles and blow away the PS3. That sure did backfire.Mrmccormo

unless it was switched if Move did the same you would laud it as a system seller and completely destroying the kinect :roll: I've yet to buy kinect or Move and never will but even I can see that Microsoft has made a hit not suprirsing the TC or you don't see it as long as its Microsoft you never will.

[QUOTE="WilliamRLBaker"]

[QUOTE="TintedEyes"]Thanks for giving some reality here. it's funny because lems said Kinect will widen the gap between the two consoles and blow away the PS3. That sure did backfire.Mrmccormo

unless it was switched if Move did the same you would laud it as a system seller and completely destroying the kinect :roll: I've yet to buy kinect or Move and never will but even I can see that Microsoft has made a hit not suprirsing the TC or you don't see it as long as its Microsoft you never will.

it didnt outsell kinect so i wouldnt say it did, doesnt change the fact that it under delivered to what sw expectedTintedEyes

Firstly I think both Kinect and Move are gimmicks ... but please enlighten us, what in your opinion was "SW" expecting?

It has moved 8 million units in three months (plus games) far exceeding MS estimate of 3 million units ... seems that MS well and truly have their business plan under control here.

I think people tend to forget (maybe they choose to forget, or maybe they're too young) that the SEGA 32X sold quite well when it first launched and was sold out for the first few months. Yet, Kinect has already started to drastically slow down in sales and has never really been "sold out" as even the best Microsoft can claim is "pockets of sold out stores" meaning no store is actually sold out.Mrmccormo

So, they've sold over a million more 360s than they did last year, when the hardware has been on the market for over 5 years? Yeah, EPIC FAIL indeed.

[QUOTE="WilliamRLBaker"]

[QUOTE="TintedEyes"]Thanks for giving some reality here. it's funny because lems said Kinect will widen the gap between the two consoles and blow away the PS3. That sure did backfire.TintedEyes

unless it was switched if Move did the same you would laud it as a system seller and completely destroying the kinect :roll: I've yet to buy kinect or Move and never will but even I can see that Microsoft has made a hit not suprirsing the TC or you don't see it as long as its Microsoft you never will.

Yes the Move sure did under deliver. Does anybody even want the thing?

I think people tend to forget (maybe they choose to forget, or maybe they're too young) that the SEGA 32X sold quite well when it first launched and was sold out for the first few months. Yet, Kinect has already started to drastically slow down in sales and has never really been "sold out" as even the best Microsoft can claim is "pockets of sold out stores" meaning no store is actually sold out.Mrmccormo

the 32X did not sell anywhere the numbers of Kinect in the first few months (650,000 units total), that coupled with the announcement of the impendiing release of the Saturn in less than 5 months after the release of the 32X pretty much spelt the doom for that particular addon

I think people tend to forget (maybe they choose to forget, or maybe they're too young) that the SEGA 32X sold quite well when it first launched and was sold out for the first few months. Yet, Kinect has already started to drastically slow down in sales and has never really been "sold out" as even the best Microsoft can claim is "pockets of sold out stores" meaning no store is actually sold out.Mrmccormo

You lost that one with putting 32x abd sold well in the same sentence...

So, they've sold over a million more 360s than they did last year, when the hardware has been on the market for over 5 years? Yeah, EPIC FAIL indeed.

vadicta

Wait, werent you guys saying that Kinect was going to flop outright, now its a flop because it didnt move as much hardware. Whats next, attach ratios suck?:?

[QUOTE="Mrmccormo"]I think people tend to forget (maybe they choose to forget, or maybe they're too young) that the SEGA 32X sold quite well when it first launched and was sold out for the first few months. Yet, Kinect has already started to drastically slow down in sales and has never really been "sold out" as even the best Microsoft can claim is "pockets of sold out stores" meaning no store is actually sold out.KevinnButlerNPK

You lost that one with putting 32x abd sold well in the same sentence...

[QUOTE="vadicta"]

So, they've sold over a million more 360s than they did last year, when the hardware has been on the market for over 5 years? Yeah, EPIC FAIL indeed.

Mrmccormo

A failure according to who's measuring stick? This just seems like an arbitrary decision made by you, as i'm sure MS weren't expecting to turn their profit within 3 months.

[QUOTE="vadicta"]

So, they've sold over a million more 360s than they did last year, when the hardware has been on the market for over 5 years? Yeah, EPIC FAIL indeed.

Mrmccormo

1 million more 360's

Over 8 million Kinect units

Millions of Kinect games sold

[QUOTE="KevinnButlerNPK"]

[QUOTE="Mrmccormo"]I think people tend to forget (maybe they choose to forget, or maybe they're too young) that the SEGA 32X sold quite well when it first launched and was sold out for the first few months. Yet, Kinect has already started to drastically slow down in sales and has never really been "sold out" as even the best Microsoft can claim is "pockets of sold out stores" meaning no store is actually sold out.Mrmccormo

You lost that one with putting 32x abd sold well in the same sentence...

the Sega genesis/Megadrive sold 40 million units ... where are you coming up with this rubbish?

[QUOTE="vadicta"]

So, they've sold over a million more 360s than they did last year, when the hardware has been on the market for over 5 years? Yeah, EPIC FAIL indeed.

Mrmccormo

Mr. Financial expert, you do realize that 500 million wasn't just spent in one day right? Its over time and also the 500 million was also spent on WP7 advertising.

This is why SW should only discuss games and consoles.

A failure according to who's measuring stick? This just seems like an arbitrary decision made by you, as i'm sure MS weren't expecting to turn their profit within 3 months.

lundy86_4

Well, he has a friend whose dad works at 360 and said they did, so there:P

[Oh, how easily people forget. 32x launched around the same time as the SNES's Donkey Kong Country, and it sold out everywhere. It was massively praised by reviewers. It was not on the market for very long, but within about half a year it had sold over half a million units, which is pretty good considering how much smaller the gaming market was back them.Mrmccormo

[QUOTE="lundy86_4"]

A failure according to who's measuring stick? This just seems like an arbitrary decision made by you, as i'm sure MS weren't expecting to turn their profit within 3 months.

bez2083

Well, he has a friend whose dad works at 360 and said they did, so there:P

Well I defer to this incredibly knowledgeable person who works at 360. Who am I to question them?

:P

A failure according to who's measuring stick? This just seems like an arbitrary decision made by you, as i'm sure MS weren't expecting to turn their profit within 3 months.

lundy86_4

[QUOTE="lundy86_4"]

A failure according to who's measuring stick? This just seems like an arbitrary decision made by you, as i'm sure MS weren't expecting to turn their profit within 3 months.

soulitane

Exactly. TC just made a ******edly short measuring stick, and thus his arbitrary limitations means MS failed :? It's a little ridiculous.

[QUOTE="TintedEyes"] it didnt outsell kinect so i wouldnt say it did, doesnt change the fact that it under delivered to what sw expectedN3xus9

Firstly I think both Kinect and Move are gimmicks ... but please enlighten us, what in your opinion was "SW" expecting?

It has moved 8 million units in three months (plus games) far exceeding MS estimate of 3 million units ... seems that MS well and truly have their business plan under control here.

"When the 32X was released in November 1994, the demand was so high that Sega couldn't fulfill all of the one million orders retailers had made for the system. By January 1995, Sega had shipped 600,000 units." Source: http://www.allgame.com/platform.php?id=35 How easily people forget...Mrmccormo

Soo... The 32x was just as much of a success as the kinect, but it shipped 600k in the same period that the Kinect shipped 8 million. :|

Wow.. just wow.. you're M$ bashing has reached a new low. This is almost sad bro.