QUOTE(T Ghost @ Aug 18 2006, 08:21 PM)

$40 my a s s. Gimme just the camera for US$15~20 and keep the useless crap out of the box, please.
QUOTE(T Ghost @ Aug 18 2006, 11:56 PM)

how do you want me to belive that MS is actually giving away the headset and not charging 5~10 for it on top of what would be the camera retail price?
And why should I be forced to pay for stuff that I don't need or even want, like the Headset?
It's not about the money is about being pushed stuff.
Only an idiot believes that MS is giving away the headset that they retail for US$20 for free.
Not only an idiot.... It is very conceivable that they are giving away everything but the camera. The problem with your reasoning is that you seem to equate the cost of production with the retail cost. While obviously the former impacts the minimum price of the good, it has no other impact on its market value; demand does.
As these quotes show, MS has got fairly close to the true market value of the product (especially given twisted's comment on PC alternatives):
QUOTE(twistedsymphony @ Aug 18 2006, 08:51 PM)

You'd be lucky to buy a decent webcam for $40, most of the ones witht the same specs as the Live Vision are closer to $80 or over $100
Just look at it as if it's a $40 camera with some extra stuff.
To be honest my first thought was that the $40 "bundle" is cheaper then I expected the camera to be alone.
QUOTE(CattyKid @ Aug 18 2006, 09:13 PM)

I agree with Twisted.
It's a pretty good camera!
QUOTE(jtom617 @ Aug 18 2006, 10:36 PM)

i agree, this is a very good price, i figured it would of been 60 for the camera, and 1 extra item. But 40 with many other things too. great dealio.

QUOTE(kronium @ Aug 19 2006, 09:14 AM)

Sony's most profitable division is their accessory division. The eyetoy for the PS3 is going to be way more expensive then the 360's. Good job MS for not being greedy.
Therefore even if MS made the camera for $5 a pop, they are not going to sell it to you minus 'freebies' for $15: it makes no sense given a general consensus on its value and alternative cameras. What does make sense is a strategy similar to that of a loss leader.
-headsets = bugger all to make (or overstocked - either way it doesn't matter). - you give them away and those without Live are likely to want to see whether they are any good. (those with silver packages will know that headsets are not used). This will, to some extent, encourage Live Gold Packages.
-the same principle applies with the Live subscription giveaway.
-XBLA games = not a massive cost to MS even if they paid for each game they gave away: they are hoping those who previously would not buy arcade games will do so based on the enjoyment of uno. Therefore they have expanded their market and are foregoing the cost of the freebie in favour of potential profit.
in each case you are incorrect: they are not merely 'adding value': they do not have to, as the camera alone is worth around the price of the package. adding value implies a price over and above the market value, which as twisted pointed out is not strictly the case.
In any event you are lucky, with a closed market, MS has not done what Kronium accuses Sony of doing: acting like a business and charging a premium price and then dropping it as demand falls away (this would make them the most profit.) If anything what they are pushing is the idea of everyone having one because it would add greatly to the Live experience, making it more desirable and complete than Sony *Live*.
Nick