A top Microsoft executive has claimed that the company will make a profit on every Kinect unit it sells.
According to The New York Times, the company firmly believes that it will make strong profits from its Kinect motion sensing gaming peripheral.
Microsoft's head of interactive entertainment Don Mattrick told the NY Times that the first Kinect prototype had been build for $30,000, and since then the company has poured in millions of dollars on developing the product.
However, the company is very confident that it will be able to derive profits out of the gaming peripheral from day one.
Initially, Sony had to sell its PlayStation 3 gaming console for a loss and Microsoft's own vXbox 360 took a considerable amount of time before it became profitable, MCV points out.
Kinect, which will be in direct competition with Sony's Move and Nintendo's Wii gaming console, will be launched in the UK on 10 November and will be available for £130.