senatorpjt on 24 July 2007
You seem to think that production costs drop linearly, which they do not. Just as computer power increases exponentially (power = year^2, the price of producing hardware drops inversely price=(1/year). Prices drop rapidly when the hardware is cutting edge (like the newest $600 video card), then reaches an asymptote where the price remains fairly constant (like the cost of a couple-generations old $50 video card).
