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Nov 3, 2010

Microsoft Increases Kinect Holiday Sales Projections

On the eve of the product's launch, Microsoft nearly doubles its holiday forecast.


Just as Microsoft prepares to unleash its hands-free motion control gaming onto the public, the company has noticed the apparent interest in the device and raised its sales expectations to match. A tweet from Bloomberg reporter Dina Bass (via TechFlash) broke the word from Microsoft's Don Mattrick. Microsoft has raised its forecast from 3 million units this holiday season to a whopping 5 million. With only two months to go until annual gift-giving time, that's quite a lot.


Of course, you have to spend money to make money. Considering that Microsoft is putting up $500 million in marketing this year, that amounts to about $100 of marketing spent for every $150 Kinect sold. Factor in the research and development against software sales, and the general buzz and word of mouth generated by a large install base, and Kinect should be off to a solid start. That is, if Microsoft's predictions hold true.

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