Microsoft Beats its Kinect Sales Forecasts

With help from heavy marketing investment, differentiated technology and a willing user base, Microsoft Corp. surpassed its Kinect sales expectations for 2010 and also outperformed its cheaper rival, Sony's PlayStation Move. Microsoft initially had provided a conservative worldwide sell-in forecast of 5 million Kinect units. As it turned out, Microsoft beat that by a large margin, managing a retail channel sell-in of 8 million units by January 4, 2011. Actual worldwide Kinect device sell-through to consumers hit 6.36 million at the end of 2010.

In comparison, Sony posted sell-through figures of 5.23 million Move controllers by the end of 2010 in three types: standalone, starter kit—including camera—and as part of a console bundle. IHS estimates the sell-through enabled 4.26 million PS3s to play Move content on a worldwide basis, as more than one Move controller can be used by a single console. Sony's marketing investment in Move was dwarfed by Microsoft’s. And although the cheapest standalone Move controller was $100 lower than Kinect, Sony’s marketing investment showed in sales. Move went on sale more than a month earlier than Kinect.

IHS iSuppli