In essence, Kinect has become the new Wii, the hot gaming toy on top of many holiday wishlists. If Microsoft can keep it up, Kinect could keep the Xbox 360 alive for at least another couple of years.
But following the arc of the Wii is as dangerous as it is lucrative. Indeed, the news of Kinect’s soaring sales pairs nicely with Ben Fritz’s look at the declining Wii in the Los Angeles Times. He notes that stereotypical non-gamers — the same folks Microsoft is targeting — eventually lost interest in the Wii and didn’t buy enough software, and now monthly hardware sales are behind the Xbox 360 and Playstation 3. Major publishers eventually soured on the console as well. Now that Microsoft has proven that people want Kinect, its challenge is to keep those customers around.