function said:
The precise manufacturing price of BR right now isn't actually the point, just the notion that it's currently far, far too expensive to include in a mass market games console, and that some people doubt it will drop to such a level by the end of 2005.
I'm dismissive because people are posting things like this... I can't understand it, literally. I'm trying hard here - it's just so illogical and ignorant.
What your saying is that the actual material costs are irrelevent and that the MSRP of a bleeding-edge technology isin anyway related to the cost that will exist in two years when the commodity aspect wears off and there is a manufacturing/price war.
Are you going to tell me what the inflated cost of a 3.2Ghz Pentium4 (which is a commodity at this point) is in someway related to the manufacturing costs or the ability for the cost to scale down with increasing economies of scale? Because thats what you're saying...
It's insane.
I happen to think that retail prices are useful indicators of the technology that might be integrated into consoles in the future. Looking at the path that CD drives and DVD drives have taken to console integration, it appears (to me) that Sony would struggle to get BR down to an acceptable price by 2005.
OMG! XBox Next is screwed! The Pentium4 3.2Ghz is like $700 itself!! Can you imagine if they used this (or higher) in the XBox? It's never going to drop to the sub-$100 range if this keeps up! Thats like $400 of loss just on teh CPU!
It's a commodity at this point, get this into your head.
The principles of economies of scales were, of course, relevant in the 80's and 90's too when CD and DVD drives were increasing in popularity.
Exactly, and look at the extravgent initial prices that drop like a rock at the first hint of competition.