Wow, this seems overly ambitious. The last X-Prize didn't even go orbital, it just went up to 100km. Shouldn't private space flight try to go orbital and launch a satellite before trying to land a lunar rover?

Where do you see the potential pitfalls? In the cost of development and production?

I think two things; Google has got the ball rolling, I'm fairly sure that they're looking to get other investors interested in tacking more money onto this X Prize, and also most people feel that the last X-Prize was actually very successful, and given 5 years a private organization could raise capital and produce a system to deliver a payload in a controlled manner to the moon.

Yes I do think it would be really expensive, though you could really cut back on cost by using a Russian rocket and a lot of ingenuity in satellite design. However I don't see the commercial opportunities yet. What would a private company do with the ability to send rovers to the moon? They might hire it out to scientists, but I don't see a big market yet, not until we have capabilities to do big work on the moon, like a moon base and manufacturing.

The previous X Prize was interesting commercially because it gave the company the possibility to send paying tourists up, see Virgin Galactic.
Therefor I think it would be better to make a craft that could send people orbital, though that would also be really expensive because you need to think about re-entry.

Though now I think about it, there is already a big prize for going orbital, and that is the $50 million America's Space Prize.
en.wikipedia.org/wiki/America's_Space_Prize

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