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foxtail said:
DonFerrari said:

That table I put was for DVD-ROM DRIVE not DVD Players (which was another part of the table)... so you are talking about different things. PS2 had to pay for royalties for their DVD Player, MS had to pay for the Driver, not the end unit... or do you think computers would have to pay royalty on DVD drive on the price of the whole PC?

To conform to the applicable DVD format standards (DVD disc, drive, codec and software, etc.) you must pay the licensing and/or royalty fees. The company that ships the end product is responsible for paying those fees unless the drive is sold standalone. For new PCs it would be the PC OEMs.  Microsoft avoided paying the fees on the original Xbox by excluding the necessary software for DVD video playback.  Even for Win7 and later they avoid paying fees by not including the codecs in non-Media versions of Windows out of the box.

Since the cap is $8 they would never have to pay more than that no matter if the whole price of the PC was $200 or $4000.   If the price was $100 or less the fee would be the $4 minimum, in-between $100-200 it would be 4% of the total price (i.e. if the final price was $150, 4% of that would mean a $6 fee).

So, since GC wouldn't need to playback DVD video they wouldn't have to pay 4-8 USD, so your point is?



duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."