Kinect costs $150 to manufacture

Microsoft is paying around $150 in total manufacturing costs for each Kinect unit, Develop understands.

A highly-positioned, trusted source had given Develop the $150 manufacturing cost” figure on the condition of anonymity, adding that the expenses of Kinect is a topic of concern for his company.

The news comes in the wake of rumours suggesting an internal struggle at Microsoft on the retail price of Kinect, a kit once touted to sell at 50, but now thought will cost over twice the price.

Microsoft says the company does not comment on rumour or speculation”.

Develop has the full story.