Microsoft to Gain $2 Billion with Xbox Kinect Sales

Analysts predict that with higher subscription growth and sales from Xbox 360 Kinect, Microsoft could a real winner, with possibilities of their Share values going as high as $37 triggered mainly by Kinect, along with Windows 7 systems and enterprise spending.

Analyst predictions

Caris & Company’s analyst Sandeep Aggarwal predicts that there will be fifteen to twenty-five percent of Xbox 360 customers who are likely or would be considering buying the Microsoft’s Kinect, a controller free motion gaming system during this year, which will generate close to USD 900 million from hardware sales alone. Due to the motion controller’s functionality this could also boost Xbox 360 console sales, which will generate a further USD 300 million, therefore combining with Xbox Live’s low attrition and increased growth in software sales and subscription, Aggarwal estimates Microsoft to gain up to USD two billion, thanks to Xbox Kinect.

Xbox Kinect

Kinect for Xbox 360 also known as Kinect will be launched on 4th November this year. It is one of it’s kind motion controller, whereby eliminating the need to use any physical controller to play games or interact. It is a web-cam style add-on peripheral that can be connected with Xbox 360 consoles, and providing users with a natural user interface using presented images and / or objects, hand gestures and / or spoken commands, without the real need for any other physical controller medium. The product with the Kinect sensor accompanied by Kinect Adventures (a Kinect launch game) is currently marked at USD 149.99; the whole bundle along with the Xbox 360 console and the game will be on sale for USD 299.99. Most of the Kinect launch games will be retailed at USD 49.99 and up.

The Technology

The Kinect sensor is a horizontal bar that is connected to the Xbox 360 console’s small-motorised pivot base. The device will have a RGB camera, proprietary software that will be running the multi-array microphone and depth sensor. The microphone will allow Xbox 360 to perform a acoustic source localization and surrounding noise reduction with witch users can go online without headsets to chat via the Xbox Live. The software would require a minimum of 175 Mega Byte space, which allow users for physical controller free gesture and facial recognitions. Video Kinect an application with the software will allow users to do video or face to face chat both on Xbox Live and MSN live messenger. With a good tracking functionality, the Kinect sensors can ensure that its motorised pivot will always adjust the internal camera on a frame and motion adjusting along with the user’s movement.

Kinect and Windows 7’s several platform launch is really going to be a boost Microsoft’s position in the market and as predicted they will not be pushed a step back by Apple Inc or any of its competitors. Currently Microsoft’s stocks are already up by 2 percent, and during the recent Worldwide Partnership Conference, Microsoft has announced a lot more product launches and revolutionizing the way it stands on today’s market.

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