haxxiy said:
BaldrSkies said:
Hardware component costs are a bad way to actually place a value on a console because it fails to take into account the R&D costs associated with developing the device.
This includes everything from designing a functioning device, to developing the OS, to distributing test and developer models, to building the network infrastructure to support the device, to paying the man-hours associated with developing the device, to potential productivity lost on other projects by devoting said man-hours on this project instead, etc.
I realize people want a simple way to put a value on a product but it's not simple at all. |
It's not like R&D is suddenly going to pop up in their quartely statements when the console is being produced and sold though. Nobody here cares about that except maybe you. That was never the point of these comparisons - instead how and why they are going to make or lose money once they start supplying the market with the console.
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Yes but it is a major consideration when placing a final price on the finished product. This isn't about the quarterly statements, this is about the end price of the console to the consumer, and that it can't be judged as fair or not by a simple component cost analysis. Do you really think any manufacturer would not take R&D costs into consideration and look to earn those costs back when it comes to sales?
