IDC Expects Microsoft To Unbundle Kinect Sensor From The Xbox One To Improve Sales Against Sony PS4

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International Data Corporation (IDC) research firm recently released their forecast on the new packaged video game and entertainment console systems. They reported that Sony’s PS4 will emerge with the largest global installed base of any console by the end of 2016. They also predicted that Microsoft will unbundle Kinect from Xbox One to reduce the price in the market and thereby increasing the sales against Sony’s PS4. This seems to be a strange prediction given the fact that Microsoft has openly said that they have no plans to unbundle Kinect from Xbox One. There was a bright spot for Microsoft in the report, they suggested that China remains the biggest global wild card. Microsoft recently announced that Xbox One will be available in China from this September.

“If Microsoft unbundles the Kinect sensor from the Xbox One console as we expect in 2015, this should lead to rough price parity with the PS4 and reset the sales dynamic at retail,” explained Lewis Ward, Research Director, Gaming at IDC. “We project this change will lead to enough of a console sales bump that Xbox One will emerge with the largest installed base of any console in North America by the end of 2016. The PS4 should still lead globally, but the unbundling of Kinect and Xbox One should move the sales needle enough to give Xbox One the installed base edge in the United States and Canada before the end of 2016.”

Source: IDC



About Author

Pradeep, a Computer Science & Engineering graduate.

  • Michael Fernandez

    Ya Ya.. Bravo Bravo…. A slightly more sensible thing will be to release XBOX1 in atleast all the markets that PS4 is available… And preferably world over.. There are people waiting with the money for the magic of XBOX1 + Kinect… Only a slight problem…. ITS NOT RELEASED…..hope i was loud enough for you MS…

    • Jhora Zakaryan

      Both consoles are released and officially available in all key markets. Releasing the console in tiny countries or the countries that don’t buy consoles (like Russia) won’t help them a lot. On the other hand, people can always buy the consoles from non official channels. I’m currently in Armenia, and although XbOne was not officially released here, you can get it in many electronics stores.
      The problem is that they need to bring really great software to convince people that its worth the extra $100 and that Kinect is relevant. People don’t want to pay a lot of money for a media machine, they want a gaming console.

      • Asgard

        Small countries containing the rest 6,5 billion people on earth? The problem is that these kind of things want to monopolize themselves. And when you get behind you get more behind because people buy what others bought before them. And that means missing most of markets where PS4 is available will cause very big problems and demonstrates the one huge problem MS has in general: MS doesnt realize world is global these days. They still think that if they win in US other countries will just follow. Nope, not anymore.

      • nickcraze

        Bull… The lead that Sony has currently can’t be even out with those small markets. You will be surprised how much small markets can make a difference. But no only that. you mention stores have the Xbox One unofficially but there is a premium on those prices. They already have great software and Sony has not better. Kinect should never be unbundle since I suspect Microsoft strategy is always long term and this has been part of Bill Gates strategy since the founding of MS. That’s why they are winners in the most lucrative markets.

        • Jhora Zakaryan

          Do not bring Bill Gates into this. He didn’t have anything to do with the bundled Kinect or their anti-consumer messaging regarding the XBOne (before the U turn). Don Matrick was the guy responsible for the XBox division before he fled to Zynga. It’s just they want to push the developers to write games that support Kinect, but we haven’t seen any hint of an upcoming must-have title that does exactly that. Even Ryse was announced as a Kinect title at the very beginning, but apparently Crytek decided to drop the support at later stages. You can yell as much as you want, but face it: Kinect is a peripheral, and is not a core part of a gaming console. If it’s Forza and Titanfall people are playing, they don’t need Kinect to do that.

          • koenshaku

            Well it is supposed to have interactive television shows for children also and such, so yeah I think it may be part of their long term strategy. From what I saw from friends anyway is that the thing still sucks almost as much as the first one in terms of voice commands.

      • robertwade

        Or NOT. I bought the Xbox One for everything BUT gaming. I don’t have a single game on the thing. I have a PC, which is WAY more powerful than the Xbox One, for gaming. I wanted the Xbox One SPECIFICALLY for the media and, ultimately, home automation.

        • Jhora Zakaryan

          Evidently, there are not a lot of people who want to pay half a thousand bucks for a media player.

          • robertwade

            That is a silly statement. The PS4 is nearly that much and it doesn’t do half what the Xbox One can. Nor will it EVER.

          • Jhora Zakaryan

            You must have misinterpreted my previous statement. I mean that most of the people who buy consoles are buying them for games first and foremost. Not a lot of people are spending $500 for a set top box. If you are OK with the XBOne as a media player, that’s totally cool. It’s just that’s not universally the case.

  • http://yourig.livejournal.com/ ZloiYuri

    Selling bundle only MS solves one problem in future – fragmentation of games possibilities. Game developers will not add Kinect support if a vast share sold Xboxes will not have Kinect. So Kinect is a real advantage, no matter PS4 sales more. And to sell more NS just have to widening markets. As usual they spending all forces in US, forgetting other world. Result? Japanese Sony don’t forget other world and dominates. This could be a good lesson to MS but it will not.

    • Michael Fernandez

      Yes fragmentation is another excellent point – Backing ZloiYuri on that… Please do not unbundle… Do the simple thing of releasing it world over. If Sony can do it why cant MS… Release world over and see how the marketshare game changes…. XBOX360 had 36months of undisputed NO.1 sold console title… XB1 can do better… Just releast it world over… Are u listening Microsoft.

      • http://yourig.livejournal.com/ ZloiYuri

        Your poisonous sarcasm means I’m right and it brings asshurt to you?

        • big_Stefano

          He wasn’t being sarcastic. It was an honest comment where he agreed with you.

          • http://yourig.livejournal.com/ ZloiYuri

            In this case I have to apologize) I read two first phrases in such intonations. I’m sorry if I were wrong.

          • whatup12

            you did that to me months ago also–you are so prone to getting angry even when we are agreeing with you. just take a deep breath…most of the people on here are MSFT fans!

          • http://yourig.livejournal.com/ ZloiYuri

            So many people aggressively arguing any my point of view – I use to see sarcasm. First I were nice and polite, but life changed this point of view – you have to be always angry to be not disappoint I people))))

          • Vương Vi-Nhuyễn – 王微軟

            Unfortunately I have to agree, but people are sensible enough to see that the merit of your comment is virtuous, fragmentation is why iO.S.’ App Store is doing better than Scroogle Play, Microsoft should stick to their vision, compromises should only be made if they can offer it as an option, rather than forcing ”the new way” to everyone, though the original vision was rubbish in most of the world, it was/is innovative, and Microsoft could’ve made it optional to use ”Cloud-games” or ”Drive-games”.

          • whatup12

            agree 100%. don’t think that moving away from the bundled approach is appropriate long term strategy. sony is selling more, but continues to lose money and may not exist in 10 years. and by the way, i am sad to say that as i lost a ton of weight running with both walkmans back in the day. that said, msft is looking for long term approach and has managed to stick 3 million+ inside peoples homes. lets see what happens in longer term with more games, more functionality, etc. they can afford it…

          • Guest

            Can’t you see that your attitude creates your own reality…

          • http://yourig.livejournal.com/ ZloiYuri

            I see your nice attitude created weakness and bitches all over the world?

          • Guest

            I see your negativity creates confusing post that ask yourself nonsense and a great level of hostility within yourself.

          • http://yourig.livejournal.com/ ZloiYuri

            maybe you just shut up and fuck yourself, bitch?

          • Guest

            I complimented you earlier for showing class, that is no longer the case. You should know though, it was a better look for you then this bitterness.

          • http://yourig.livejournal.com/ ZloiYuri

            I apologized and said sorry to person I didn’t understood right. Why others decided it’s a reason to fuck my brain? I honest only to normal people. Others can suck off cactuses.

          • Guest

            It showed class apologizing, but more importantly, you learn from this to be less of a hater and assuming negativity.

        • Michael Fernandez

          :-( I wasn’t being sarcastic… I was supporting what u said…

          • http://yourig.livejournal.com/ ZloiYuri

            Yes, I know now, I were mistaken and sorry for it. I had a nasty mood and read according to it))) I apologize and don’t take it so close)

    • kevgallacher

      Who cares about the Kinect at this point. Microsoft has had plenty of time to show us a good reason to have a kinect. So far they have failed. There is still no killer app and it doesn’t look like any are coming. How many game use it in any meaningful way. So far it just a gimmick just like last gen.

      • http://yourig.livejournal.com/ ZloiYuri

        So maybe you will play Gameboy Advance for that reasons? :D

        • Jhora Zakaryan

          So, if I don’t like to stand in front of my TV and jump/kick in the air, I should stick to a GBA?

          • http://yourig.livejournal.com/ ZloiYuri

            yes.

          • Jhora Zakaryan

            You’re a bag of wisdom, aren’t you? Keep enlightening us mortal souls with your divine comments.

          • http://yourig.livejournal.com/ ZloiYuri

            Отвали, сука

          • Jhora Zakaryan

            Урод моральный! Шовинист хренов!

          • http://yourig.livejournal.com/ ZloiYuri

            Можно я ничего не буду говорить про цвет жопы? :D Как говорят у них, “Who the fuck are you to lecture me?”)

          • Jhora Zakaryan

            No one is trying to lecture you, bitch. It’s an open discussion and you’re just a racist whore who’s bitching on people that don’t have the same viewpoint as yourself. I don’t have anything else to say, so do the world a favor and go suck Putin’s cock.

          • http://yourig.livejournal.com/ ZloiYuri

            Suck your Putin’s cock yourself, I hate him more than idiots like you. And in future – never use “retard”, it’s impolite. Use “moron”, it’s more like to situation. And I can recommend a great depilator)))

          • Jhora Zakaryan

            I didn’t mean to sound polite, idiot. All of a sudden you started pouring out shit from your cunt mouth and you expect me to be polite with you? Go stick your depilator in your silky smooth asshole…

          • http://yourig.livejournal.com/ ZloiYuri

            No, I don’t like polite people at all, I like smart) And what about your racism, furry whore? Why do you think if somebody is Russian so he must support some putins or other misfits? And what you have against gays? You are homophobic racist, you know? (btw, hairy ass is so unhygienic, I know what I’m talking about. So you walks with permanent dirty ass?)))

      • Vương Vi-Nhuyễn – 王微軟

        The Kinect sold better than Halo, Microsoft shouldn’t let it go…

    • Duk3togo

      Thx u, I’ve been saying this since day one. There comment from kevgsllacher has no foresight. If we stayed with this mind set were would still be playing Sega genesis and super Nintendo.

      The Kinect is the future along with illumiroom (or what ever you call it). We need to step out the box and immerse ourselves into the games. Enduring is becoming voice activate and touch based and the Kinect tired those together. Has it been explored, no, but can it be, yes.

      Open your eyes to the possibilities instead of sitting it down. We already lost MS’ original vision with the change to the DRM. I just wish they would bring some of those features back.

    • Vương Vi-Nhuyễn – 王微軟

      Exactly, Microsoft is too American-oriented with their features, that’s why they’re not selling in the rest of the world, PlayT.V. works everywhere, meanwhile the Universal Remote only works in the Anglophone world, and TeleBing is bound to Japan… and surprise surprise not a feature of the Xbox One, software is the problem, not hardware…

  • Bugbog

    I don’t see this likely occurring, not for the immediate future (i.e. 1yr+). Apart from having already stated that they aren’t going to do this, their console territory release doesn’t even match that of the PS4 yet (13 vs 48?), so there is much room yet to achieve parity before they would need to consider unbundling the Kinect.

    Above aside, their main reasoning is flawed (price parity); The Xbox (at least in the UK) has already achieved price parity with the PS4. The PS4 costs £349 (£384 with a game), whilst the Xbox One costs £369 (£389 with a game).

    Once the Xbox’s price falls further (in a year’s time) and it achieves territory parity, I think it is the PS4 that will have troubles, given that they aren’t in a position to lose too much more on the console.

  • Rikkirik

    Microsoft is still sold is a quarter of the markets that the PS4 is sold. Looking at sales numbers Sony should be ashamed that the Xbox One (sold in 13 markets) is not lagging far behind the PS4 (sold in 52 markets). Unbundeling Kinect would be a foolish strategy, instead Microsoft should increase the amount of markets in which the Xbox One is sold

    • whatup12

      I agree, but was surprised by the 7 million vs 3 millon sold figure. is this right?

      • Bugbog

        No. 7M vs 5M+

        • whatup12

          well, it seems like the 5 million is sold to stores and the 7 million is in people’s homes. that said, i agree that it is totally unclear as to what is the fair comparison here!

          • Toni D

            There might be 200K Xboxes in stores all around the world, tops.
            The numbers that circulate are fanboy make believe.
            Sony has released in so many countries that they are spread thin, so it creates an illusion of that they are selling better than they have.
            PS4 are out of stock for more reasons:
            *Hardware become cheaper over time so they are in no hurry to build them, Sony is bleeding money and needs to make a profit per unit.
            *The initial closing of the manufacturing site in China during the investigation of what went wrong in the beginning when they had a lot of hardware based issues.
            *Their logistics planning is bad.

          • whatup12

            Hi Toni,
            Great and helpful! No doubt that Sony is a shell of the company that they once were — and hoping that they one day recover as i have fond memories of walkmans, discmans, Trinitrons, etc. But indeed, MSFT is in this for the long term and think they are well placed to carry out this vision. That is why rumours of spinning off Xbox as a company makes little sense to me given the investments already made. I get concerns about throwing good money after bad, but don’t see this as a concern here. similarly, they spun off companies like expedia only now needing to reinvest in other companies like 4square as part of their access to information. ie, it is hard to know in the present what the future value (either monetarily or strategically) of a company will be.

  • LexicoRed

    Most of this talk is just rearranging deck chairs on a sinking ship. It is time to be bold.

    It time for MIcrosoft to spin off the division, sell hardware to Dell or Lenovo. Nadella needs to continue the push into the cloud and stop the company from being distracted with money losing toys.

    • eharris560

      Be carefully what you ask for. If MS sells Xbox. What’s stops them from selling Bing. Hell while they’re at it scrap Windows and Windows phone too, and go all in on cloud services since its the only real “MONEY MAKER”. What people like you that call for MS to sell or shutter this things don’t understand is. They all are important clogs that make up the whole machine. By the way cloud services are not that big to the average consumer. The cost of a data plan that would make these cloud services attractive are to high.

      • LexicoRed

        Yes, XBox Window Phone and Surface all needs to go. Their all cash flow suck contribution nothing to the bottom line.

        The greatness of Microsoft is Software and Services not profit killing hardware. That was Ballmer’s dream and smart money understands it is time to give it the boot just like the Board did to the ex-CEO.

        • tofferne

          The biggest problem for Microsoft is, they talk and talk, but to find the hardvare around the World is difficult, whatever it’s Surface Xbox 1 or Windows phones.
          They are loosing 50 % sale because of the bad management of sale and distribution, they need to have there products in every corner of the world liker the other companies.
          Appel, android, Samsung, HTC, LG and Sony you can buy everywhere, but not Microsoft hardware, these items are extremely limited around the world.
          If they don’t wake up and take it serious, they will be the big looser about hardware. Without products around the world, how to sell them ?

          • LexicoRed

            You are correct, Microsoft has never been successful at the consumer market; their talent and focus has been in the enterprise world. That is also where their future is if they don’t blow it by wasting resources continue to try to do what they are not good at.

        • eharris560

          Your foresight is limited. All you’re talking about is the present. What’s the future plan. Is just enterprise? That is small pound with stagnant water compared to the consumer ocean.

          • LexicoRed

            Let Dell, Lenovo, LG, Acer fight over the pennies they make selling cheap junk to consumers.

            Microsoft will make dollars at what they do best Service and Software.

          • eharris560

            Comsumer services they would have to offer for free to complete with Google. They would be fighting a war with just bullets and no guns.

          • LexicoRed

            If they have to give away consumer services while lose money on the hardware they sell too, how does that make Microsoft more competitive?

            That is why it is a silly battle to get in and why the future is in Enterprise service and software. It’s why Bill was so easily willing to confirm he would support spinning off XBox.

          • eharris560

            You missed my point. My point was if MS gives up on hardware they would have no effective vehicle to deliver these services to the consumer. You clearly would be ok with MS just being in enterprise. I on the other hand believe they need both. MS has no chance in the consumer market without Xbox, Surface, and WP. Again what else could he had said with out appearing to be willing to undermine the new CEO. Alot of good that would’ve did MS stock. By the way he did give a reason why Xbox is important to MS future growth.

          • LecicoRed

            The Microsoft hardware is struggling to even sale so it is not even able to accomplish the scenario your wishing for

            Microsoft did not have to manufacture the iPad but yet have already delivered 27 million copies of Office to consumers, in less then two months. That’s more the Lumia WP, Surface and XBox combined so far this year!

            Microsoft developing best of class cross platform service works while the pursuit of hardware keeps on failing.

          • eharris560

            Office is basically a standard. I believe it would do well no matter what. How would OneDrive, and Xbox Music do as a stand alone product. I don’t see them pulling Office numbers. I’m going to make a bold prediction here. If MS were to kill hardware now consumer Windows will suffer severe collateral damage. Lets stop pretending MS made itself point man on Windows 8 with the Surface, WP, and XboxOne. Imagine what MS partners would do if they announced the selling of Xbox, and cancellation of hardware after two years of hearing MS saying we’re all in. They would immediately focus soley on Android. That’s tablets, Chrome books, and phones. Something like now, but times 100. A very high percentage of consumer would be funneled into Google services. There would damage relationships with developers, in no consumer trust. It would HP on a bigger scale. You should take a step back and look at roles these products play in the bigger picture. The industry has changed if you don’t get people using your services on mobile devices first. It’s a good chance you won’t get them at all. Example I have 4 kids an all of their school push Apple, and Google Docs.

          • LexicoRed

            Microsoft mobile product don’t sell. So if it is as you say the future is to get people to use it, then the company is screwed anyway.

            But the good news it is not crossplatform software and backend services will offer the company a bright future. So let’s stop wasting resources on hardware and focus on what matters.

        • eharris560
          • LexicoRed

            Yes it is great to hear Bill Gates saying he would absolutely support spinning off XBox when Nadella proposes it.

          • eharris560

            Not trying to dismiss it, but what else could he had said??? I guest you missed the other stuff he said. Like I said before limited.

          • LexicoRed

            He could say “like Bing, there is a strategic importance in XBox for us and we would not consider a spin off”

            But he choose not to because he knows it is not if they do but when. Bill understands Microsoft’s future is Software and Services. Eliminating weaker performing hardware devision is not limiting it’s just allowing greater focus on the important and profitable stuff that matters for long term growth.

  • alukard

    Bad idea, but I guess the vocal haters with short sight will win again and we wont hear the end of it.

  • Mikado_Wu

    Please No, Microsoft. You do this, and the Lazy Developers won’t make any good game for the Kinect.
    You already caved innovation bringing back the start menu, don’t do this too.

  • Ray

    Just don’t understand why Microsoft did not yet release enough family friendly Kinect games similar to what N did for WII. I think that’s the biggest issue for Kinect.

  • Sai Das

    Wow! Nobody could see that coming! >sarc>

  • Ruufus

    Options are good. In my case, I use the Xbox One as an media/entertainment device using the voice command on everything including TV controls – change channel, mute, etc. My partner uses the traditional Comcast remote. Win/Win!

  • ZappyKins

    Terrible news. An Xbox One without Kinect is just a slightly more advanced 360. There is now no reason to get a console. The vision and innovation and what make X1 truly unique was Kinect and all that it had to offer. Now support for Kinect will be less if any from developers.
    This is a HUGE FAIL for Xbox fans, especially it’s early adaptors. The people complaining about Kinect were most likely never going to get an Xbox anyway. So they have let the trolls win. Now they turn their back on their vision for the Xbox One and fans are furious.
    So the question is now, are you going to get a Sony PS4 or a slightly less powerful but at the same price. Microsoft PS4(X1). This is a terrible day for gaming.
    Truly, why even bother with a console now. Just get a more powerful PC and plug in an X1 controller.