Monday, December 13, 2010

Kinect Giving Microsoft (Nasdaq:MSFT) Image Boost it Needs?

Microsoft (Nasdaq:MSFT) has went through cycles of image crises, as they're always compared to Apple (Nasdaq:AAPL) or Google (Nasdaq:GOOG), and others, as far as the "cool" factor goes, even when they have come out with products like the XBox, which was grudgingly admitted by some to be outstandingly awesome.

Now they've generated another win, which while not being a major part of their bottom line, will be just as important from the marketing and branding factor as anything else they do in the short term.

For business user their finally getting their cloud computing lined up won't hurt either, although that's a different demographic and media-type story.

As far as Kinect, it's an accessory that can be added to the Xbox which allows the user to play a video game without needing to use the controller.

Since introducing Kinect, over 2.5 million hve been sold, with a total of 5 million expected to be sold by the end of 2010. More than likely it'll far surpass those numbers.

Even if they were to sell the 5 million, and probably many more, that would only account for about 1 percent of the projected $68.6 billion in revenue Microsoft will generate for the fiscal year ending June 30.

Again, what this does for Microsoft is position them in the mind of people as an innovation giant, something that tends to ebb and flow with them, and usually to the negative side of the equation.

But with some calling kinect "one of the greatest technologies ever invented," as equity-research analyst at Standard & Poor's, Jim Yin asserted, it has again put Microsoft on the innovation map.

It is believed it could lead to extraordinary products in the future.

This can only be good news for the tech giant, which continues to be largely undervalued.

Microsoft closed Friday at $27.34, up $0.26, or 0.96 percent.

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