We’ve seen the Kinect become part of a colossal ascendance for the Xbox 360 and Microsoft as it managed to move 2.5 million units over the period of its first 15 days (and the Christmas holiday isn’t even upon us yet.) Analyst Sandeep Aggarwal from Cairs & Co. believes that the astronomical sales of the controller won’t be letting up soon and lists a series of reasons why.
All Things D brings us a summary of the enumerated reasons,
In fact, Caris & Co. analyst Sandeep Aggarwal says he expects Kinect to generate about $2 billion in gross revenue for the Xbox ecosystem. Beyond sales of Kinect itself, the controller is also driving sales of most everything else Xbox related. In Aggarwal’s view, Kinect offers four distinct benefits to Microsoft:
- Better material attach rate for the 45 million Xbox installed base
- Higher adoption and market share gain for the console itself
- An uptick from the sale of new titles
- Lower attrition and higher gross new subscriber growth for Xbox Live users
At first, it’s easy to poo-poo these sorts of predictions as obvious. The power behind the Kinect to drive sales is already obvious and Christmas is just around the corner—this will only drive up Xbox 360 sales themselves (plus a Kinect controller in bundles) and sales of Kinect themselves.
However, it’s interesting to note what the current install base of Xbox 360 consoles out there: 2.5 million Kinect units moved represents a little more than 5% of all consoles. Add in the release of an increasing number of games that can use the Kinect and it’ll give people a powerful reason to jump on with it.
Although it would have been nice to get some sort of stats on what the current Xbox Live subscription growth vs. attrition would have been, the increase in subscribers will probably also correlate with potential Kinect buyers.
If nothing else, Kinect is a sales powerhouse.
[Image credit: Getty Images]
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