Microsoft to Fund Kinect-Based Startups to Boost Kinect & Xbox Sales

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Trefis
MSFT: Microsoft logo
MSFT
Microsoft

Microsoft (NASDAQ:MSFT) launched the Xbox around 10 years ago, and the Xbox 360 has been the top selling gaming console for the last few months. The Xbox 360 competes primarily with the Sony (NYSE:SNE) Playstation 3 and the Nintendo Wii. Microsoft launched a motion gaming addon – Kinect – for the Xbox 360 a year ago, and it has been a massive hit, boosting sales of both, the Kinect as well as the Xbox 360. Thanks to the success of the Kinect, Microsoft posted a 45% increase in revenue from the Xbox in FY11.

Microsoft, in collaboration with TechStars, has launched a new accelerator for start-ups developing apps and new technologies powered by the Kinect, in order to create a complete ecosystem of apps which will use Kinect for user interaction in different use cases and scenarios. [1]

Check out our complete analysis of Microsoft here

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Kinect to drive Xbox as well as Windows 8 sales!

The Xbox currently has around 18.5% share of the global console market. We expect it to capture around 27.5% by the end of the forecast period, backed by the success of the Kinect, a series of new exclusive titles, and the growing popularity of the Xbox Live network.

Microsoft recently announced that it will be adding Kinect support to Windows 8 and launched a Kinect SDK for Windows 8, enabling developers to build Windows apps which work with the Kinect addon for motion based gestures. With this move, it aims to not only boost sales of the Kinect and the Xbox 360, but also improve Windows 8 sales, by offering technology available with no other operating system.

The Entertainment & Devices division, which is comprised of the Xbox, Kinect, Windows Phone and Zune, contributes nearly 8% to Microsoft’s $32 Trefis price estimate, which stands nearly 20% above its current market price.

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Notes:
  1. Microsoft And TechStars Launch Kinect Accelerator For New Kinect-Based Startups, Techcrunch []