Will nextbox use blueray?

[Squilliam]

heruamon said:

Squilliam said:

Also the writers for the format haven't even left China so they hardly have to worry about piracy. Cost effective is pretty important especially now that they have yet another fixed cost of $40 or so with the Natal or Natal 2 interface.

Lets see $249 - $40 packaging/shipping/retail = $210

$210 - $80 Natal, controller, cords, leads, power brick, chassis. = $130

$20 saved out of $130 for internal components would be quite significant. Its the difference beween having say 1GB of ram over 2GB of Ram and a much larger HDD at launch.

In addition to this it means their sunk costs towards optical distribution aren't too great that they would have any disincentive to support kiosk/direct download distribution.

 

Yeah...I remember listening to a Marty O'Donellel interview with OXM, and how he talked about royalties from some jingles in the 80's, when he worked for an ad firm is called "magic money".  People jsut don't understand that licensing fees can really eat into your margins, and M$ is a EXPERT when it comes to licensing technology and the associated fees, so that creates my doubt that they will adopt brd.  Looking at the Wii, I don't think Nintendo ever sold it at a much of a loss, if any...I'm sure M$ is going to try to emulate that as much as possible for Xbox Next.

Yep royalties are terribly expensive. They have to pay ATI + IBM + DVD forum + NEC (ED-Ram IIRC) and a few others and that probably totals about $35-40 per console which is a pretty significant fixed cost. If they are smart they'll pay a big lump sum to AMD for the chip in their next console and limit their other royalties to keep their overall marginal cost per console low even if they take a hit ahead of time on the fixed costs.