Microsoft: A 3-D camera for the Xbox

Microsoft (MSFT) has come up with a way to take potential customers from the Nintendo Wii. It will put a 3-D camera in the Xbox 360, an attempt to attract consumers who are not necessarily the hard-core game players.

The new video camera is meant to help people playing games to move images on the screen by moving their bodies, which is a core feature of the Wii. The drawback of the feature is that it may be too expensive to attract consumers who otherwise might not buy a game console at all.

According toThe Wall Street Journal, Microsoft "is likely to sell the camera first as an accessory and could ultimately bundle it with the Xbox 360." The Xbox is already much more expensive than the Wii and selling the 3D camera makes the gulf between the two even greater. A look at Amazon.com shows that a number of the Xbox 360 consoles cost over $400. Most versions of the Wii go for under $250.

Microsoft may have a good idea, but it could still be pricing itself out of the market where it wants to make inroads.

Douglas A. McIntyre is an editor at 24/7 Wall St.

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