The amazing Kinect technology sells at retail for $150, but is comprised of only $56 worth of materials. A teardown analysis performed by UBM TechInsights reveals these materials include chips made by PrimeSense Ltd., Marvell Technology Group Ltd., Texas Instruments Inc. and STMicroelectronics NV. 

The technology used to capture motion is done by both audio and infrared. Allan Yogasingam, a technical marketing manager at UBM TechInsights states:

"The future applications of this technology could be fascinating. I can see this being incorporated into televisions—allowing users to chang the channel by waving their hand,  essentially replacing the remote control."