NEWS ANALYSIS: KINECT’S PRICING 12 MCV 06/08/10
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MAKING NEW KINECTIONS
Kinect is Microsoft’s biggest mainstream venture to date. With pre-orders off to a strong start, James Batchelor looks at how the camera will capture the market, despite its divisive price...
THE PRICE of Kinect has always been a crucial issue. When the device was first unveiled
last year, everyone from retailers and publishers to the all-important consumers began to wonder how much this ambitious technology would cost – especially as Microsoft began positioning it as akin to a new console launch. The platform holder finally announced
the price two weeks ago: £129.99 for the camera itself and Kinect Adventures. It is considerably more than the sub-
£100 price point the High Street demanded in the wake of E3 (MCV 593, 25/06/10). And yet retailers surprised the
industry by revealing the number of deposits received for Kinect so far has been higher than expected. There have, of course, been some
complaints – particularly from consumers online – but Grainger Games even claims the device could be the company’s biggest pre-order to date. Microsoft are understandably pleased with the response. Through the initially high price points
of Xbox 360 and even it’s Xbox Live service, the platform holder has gained a deep understanding of its audience’s financial tendencies – and the first wave of pre-orders for Kinect show that this has not waned in any way.
“We know our consumers are willing
to pay for great experiences,” European VP of interactive entertainment business for Xbox Chris Lewis told MCV when the price was announced. “I am confident that this is what
Kinect represents. I am in a very buoyant frame of mind for the coming Christmas and the holiday phase.
“As long as we continue to offer
consumers great, deep and compelling value, then they will keep flocking back to Xbox 360.”
“
PRICE DOUBTS However, there still remains some level of scepticism about the device’s price. Some companies are less convinced that Kinect will capture either the core or mainstream audience in the way that Microsoft hopes – or at least, not around the controller’s launch this November. Codemasters’ CEO Rod Cousens tells MCV: “The price point will doubtless
have been researched and influenced by its Christmas release window and the anticipated achievable volume from the Xbox 360 devotees who will want to be first in line for the latest offering. “Microsoft will be confident about
selling all it can make this year. Although bundling Kinect with a game implies a standalone price target of sub-
We see this as the year of expansion beyond the core gamer –an audience we are synonymous with.
Chris Lewis, Xbox “Also, the RRP may have the
unfortunate effect of deterring any impulse buyers.” Microsoft is quick to assuage any
doubts the industry may have, emphasising the consideration that has gone into Kinect’s pricing. “We researched it heavily,” Lewis says.
“As with most things, we do massive amounts of consumer research. Not only did we consult with retail and the media, but also the analyst community. We think this is great value.”
£100, which is where it will need to be if it is to attract mass and establish itself as a platform.” ShopTo owner Igor Cipolletta adds:
“If you compare the cost of Kinect to a full set of Wii or Move controllers, you can see that Kinect will work out as the cheaper option. But for the sole, hardcore gamer, it looks a very expensive option as a substitute for a joypad. “That said, Nintendo and Sony allow
”
you to build up your multiplayer options by buying additional Wii Remotes or Move controllers as and when needed, whereas Kinect is a one-off cost.
TARGET AUDIENCES The firm is particularly confident that Kinect will sell well in the UK. Lewis claims that in Britain the Xbox
360 boasts the highest attach rate of all the platforms available. He also reports that UK 360 owners buy more games every year than those in other territories. While he was unable to give exact UK
figures, the most recent NPD report gives the US attach rate as an average of 8.9 titles per console. When 8.9 games equates to potentially
over £400, a £130 price tag could be considered a fair deal compared to what gamers have spent on their Xbox 360 – particularly for a core audience. For the unitiated, the mainstream
gamers that have yet to purchase Microsoft’s console, and ultimately the
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