Kinect bill of materials costs about $56

Kinect, Microsoft’s new hands-free remote control and hopeful game-changer for Xbox 360 consoles, has a bill of materials (BOM) cost of about $56 according to the EETimes. Microsoft has began selling Kinect for $149.99 USD and as it stands makes about $94 off every device sold… quite the profit margin. Some time ago, Zunited wrote about rumors surrounding Microsoft wanting to market Kinect at $119 seemingly believing that Microsoft’s profit was at least $30. Turns out, it’s much more than that.

Of the roughly $56 BOM, about $17 is attributed to the cost of the PrimeSense reference system, including the cameras, microphones and processor, UBM TechInsights said. Microsoft is planning to retail the Kinect system for $149, and stands to make a healthy profit on each unit, UBM TechInsights noted.

Microsoft earlier this month predicted that 5 million Kinects would sell by year’s end (previously an estimated 3 million), while some of those are bundled with games and actual consoles, that marks a $465 million profit at a little more conservative $93 per unit estimation. That’s, of course, without marketing and other costs factored in.