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Microsoft Kinect For Windows To Help Stock Bust Move To $32

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Image by Getty Images via @daylife

Microsoft has officially announced that it will launch the Kinect motion gaming accessory for Windows on February 1 in multiple markets across the world. [1]

Microsoft has been working on Kinect for Windows for months now after it was a huge hit on the Xbox 360 gaming console. Microsoft also announced that it has sold around 18 million Kinect units since its launch around 14 months ago, which makes it the fastest-selling consumer electronics device ever.

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Microsoft competes primarily with Apple Mac OS X in the OS market, and the Sony Playstation 3 and Nintendo Wii in the gaming console market.

Check out our complete analysis of Microsoft here

We currently have a $32 Trefis price estimate for Microsoft, which stands nearly 15% above its market price. Windows accounts for around 25%, while Xbox accounts for around 10% of its Trefis price estimate.

Kinect for Windows: Another Multi-Billion Dollar Business for Microsoft?

Microsoft priced Kinect for Xbox at $149. With sales of 18 million units, it generated around $2.6 billion in revenue in roughly one year. Given that its Windows user base is much bigger than its Xbox user base, we expect significantly higher sales of the Kinect for Windows.

Microsoft has also priced Kinect for Windows higher, at $249. Even if we assume roughly the same amount of sales – 20 million units in the first year – it could generate an additional $5 billion in revenue for Microsoft.

We expect Xbox, Kinect and Windows to be Microsoft’s greatest revenue growth drivers in 2012. Microsoft is slated to launch Windows 8 in 2012, which should boost sales of Kinect for Windows further.

Understand How a Company's Products Impact its Stock Price at Trefis

Notes:

  1. Starting February 1, 2012: Use the Power of Kinect for Windows to Change the World, MSDN []

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