The Kinect is doing relatively well, so well in fact that retailers had pre-orders "capped" in order to maintain sufficient stock for the launch according to analyst Billy Pidgeon of M2 Research.
"I think Microsoft will sell as many Kinect as can be produced and shipped this holiday season. If five million Kinect are available at retail in North America and Europe, five million will be sold. I understand that pre-orders were very aggressive, to the point where these had to be capped to allow for sufficient stock," he said.
"Kinect will move new Xbox 360 consoles, but I believe at least half will be sold into the installed base. Here's an interesting scenario: a tactically deployed Xbox 360 price cut could give Kinect the capability to accelerate penetration to the point where Microsoft could gain a large mainstream user base while still leveraging a very active hardcore base."
Even so, Pidgeon believes that Microsoft are currently competing for the mainstream casual crowd with Nintendo's Wii. Whereas, the PlayStation Move is currently "more of an attraction" to core gamers.
"Move is currently more of an attraction for gaming enthusiasts, primarily because PS3 is still selling into the base, and Sony is right to position Move as precise motion control for the hardcore," he said.
Source: Industry Gamers