Microsoft's Project Natal may be shrouded in mystery for the most part right now - it seems only celebrities are allowed to have a go on about the only game announced for it - but Forbes thinks it might be onto something with the pricing of the device.
Following a demonstration of the motion-sensing add-on from Microsoft's Techfest event, Forbes reports that all of the components used to build Natal can be found off the shelf. Perhaps more impressive is the fact that, despite being able to track your movement in 3D space, the device apparently uses less power than a cellphone.
"That means the product likely costs no more than $40 to produce," reports Forbes. "Microsoft won't say exactly how much, or what it plans to charge, but indications are Microsoft will be charging much more than cost."
Enter Don Mattrick, Senior Vice President of Microsoft's Interactive Entertainment Business (phew), who said that feedback for Natal "tested off the charts" and that they "won't fully price off that feedback."
The thought that Natal could cost Microsoft $40 to make is an interesting one, but is it accurate? And will the company charge over cost for profit, or sell under cost for mass adoption?
All we know is that Forbes is a little off with its not-so-direct comparison with Nintendo's console. "By comparison, the Wii, which Microsoft certainly hopes to compete with, has a suggested retail price of $199." Except, Natal won't work on its own will it Forbesy?
How much do you think Natal will cost? Let us know in the comments below.
Following a demonstration of the motion-sensing add-on from Microsoft's Techfest event, Forbes reports that all of the components used to build Natal can be found off the shelf. Perhaps more impressive is the fact that, despite being able to track your movement in 3D space, the device apparently uses less power than a cellphone.
"That means the product likely costs no more than $40 to produce," reports Forbes. "Microsoft won't say exactly how much, or what it plans to charge, but indications are Microsoft will be charging much more than cost."
Enter Don Mattrick, Senior Vice President of Microsoft's Interactive Entertainment Business (phew), who said that feedback for Natal "tested off the charts" and that they "won't fully price off that feedback."
The thought that Natal could cost Microsoft $40 to make is an interesting one, but is it accurate? And will the company charge over cost for profit, or sell under cost for mass adoption?
All we know is that Forbes is a little off with its not-so-direct comparison with Nintendo's console. "By comparison, the Wii, which Microsoft certainly hopes to compete with, has a suggested retail price of $199." Except, Natal won't work on its own will it Forbesy?
How much do you think Natal will cost? Let us know in the comments below.
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Comments
lifewithouttoast 3 Mar 2010 12:18
1/8
$40 for the hardware, maybe. Add another $40 (at least) per unit for R&D. I don't think they'll want to charge over $80 per unit, and that'll probably include a game, in line with the pricing for Guitar Hero/Wii Fit (game + peripheral).
PaulRayment 3 Mar 2010 13:03
2/8
I think most people would be surprised how much the tech costs to make 'high-end' systems. But it isn't just the tech that costs, as the previous poster points out you have the R&D and don't get me started on the marketing/advertising costs. If MS want this to go mainstream they will throw masses at the campaign and I'm sure that will be passed on. I expect it to be about £100 probably just under.
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deleted 3 Mar 2010 13:38
3/8
So if a Wiimote is about £30.00, Sony are going to want to compete with that so Arc i reckon will sell for £40.00 each (+need Eyetoy) so i reckon MS wont wanna be too much over so im thinking about £50.00 £60.00 for natal, top end £75.00.
alexh2o 3 Mar 2010 13:45
4/8
This is Microsoft we are talking about... the R&D and marketing will just be assimilated by the Entertainment & Devices division as a whole. Also taking the quantities they will produce, I'm sure it'll cost them even less per unit. Plus I'm sure they will go for adoption over profit with Natal!
My guess would be Natal included with every brand new 360 at the existing price points or the same price as a game standalone (£39.99 in the UK). I also reckon they will bundle it with a free Wii Sports type game collection, so you have lots to play straight out of the box.
My guess would be Natal included with every brand new 360 at the existing price points or the same price as a game standalone (£39.99 in the UK). I also reckon they will bundle it with a free Wii Sports type game collection, so you have lots to play straight out of the box.
ergo 3 Mar 2010 18:23
5/8
"Also taking the quantities they will produce"
Wait, what? Do you have any idea how many of these things they're kicking out? If so, I'd love to hear numbers...(I know you don't, so speculating on their production runs for an unproven, completely unknown, quantity and then applying phantom economies of scale sounds great on a message board post, but not so much in the land we call reality.)
Wait, what? Do you have any idea how many of these things they're kicking out? If so, I'd love to hear numbers...(I know you don't, so speculating on their production runs for an unproven, completely unknown, quantity and then applying phantom economies of scale sounds great on a message board post, but not so much in the land we call reality.)
alexh2o 4 Mar 2010 16:30
6/8
@ergo Firstly the whole article and every comment so far is "speculation" - apparently it makes for not just a good message board post but also a news article!
-Economies of scale state the more of something you make, the cheaper it is. Fact.
-Microsoft have said they would like Natal on every 360 eventually.
-As of Jan 2010 there are 39million 360s sold worldwide.
-Microsoft will push Natal with every new 360 sold after release.
Based on the above statements its fair to say the 'numbers' you'd love to hear are probably in the range of 1million units to 40million units. My speculation is production runs in the first year will be close to 10million units. On those sort of figures economies of scale will factor in and affect this amazing land of reality!
-Economies of scale state the more of something you make, the cheaper it is. Fact.
-Microsoft have said they would like Natal on every 360 eventually.
-As of Jan 2010 there are 39million 360s sold worldwide.
-Microsoft will push Natal with every new 360 sold after release.
Based on the above statements its fair to say the 'numbers' you'd love to hear are probably in the range of 1million units to 40million units. My speculation is production runs in the first year will be close to 10million units. On those sort of figures economies of scale will factor in and affect this amazing land of reality!
the price of natal. 11 Mar 2010 21:38
7/8
if natal turns out to only cost $80 that would be great.
Eduardo 12 Mar 2010 23:43
8/8
how much project natal