Posted on Friday, July 16 2010 @ 6:05 CEST by Thomas De Maesschalck
Caris & Co. analyst Sandeep Aggarwal
predicts Kinect could generate $1 billion in revenue for Microsoft in just its first year, plus another billion for the rest of the gaming industry:
Sandeep Aggarwal of Caris & Co. wrote Monday that Kinect could help the industrywide gaming market generate $2 billion in its first year, with Microsoft itself snagging at least half the money.
How Aggarwal calculated revenue generation is significant. He did not focus solely on the device, which is expected to sell for $149 when it launches later this year. He included all related revenue for the overall gaming industry, including sales of individual games.
Aggarwal said he believes that 15 percent to 25 percent of current Xbox 360 owners will buy the Kinect within its first year, potentially helping Microsoft generate $900 million in extra hardware revenue. Aggarwal also said he believes that Microsoft will increase its overall hardware market share, helping it to generate an additional $300 million on the sale of 1 million Xbox 360 units to customers who didn't originally buy Microsoft's console, but want Kinect.
