From: Ian Montgomerie
Subject: Re: Open Source Consumer Products
Date: Wed, 20 Nov 2002 22:15:04 -0800
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On Wed, 20 Nov 2002 10:13:19 +0100, "Geraldo S."
>"Robin KAY" wrote in message
>> "Geraldo S." wrote:
>> > Or game console (someone tried that I think)?
>> The Indrema? The company went bust after producing only a single
>That's the one. Their business model was all wrong, though. They were just
>using OSS (Open Source Software) and charging royalties to ISV's. That isn't
>going to work. To truly make a dent into the market, you need to have zero
>royalties to entice ISV's to develop games for your platform in the first
>place. As a manufacturer you should make money by selling the consoles
>themselves. That isn't easy as most manufacturers are subsidizing the cost
>of the consoles in the first place but to wriggle your way into the market
>you have to break with past practices or you'll stand no chance at all
>against Sony, Nintendo and Microsoft.
So let's see, in order to compete with X-Box, Playstation 2, and
Gamecube, you need to hit a 200-300 dollar price point. They can
spend 400+ dollars on those consoles, selling them at a loss and
making profit on the games. You'd want at least a 20% margin on
hardware... figure 150-250 dollars that you have to spend.
In other words, you want to compete using hardware that is about half
the cost of the other consoles, thus significantly less impressive in
terms of the game engines that can be written. Except that if people
want a slower, less graphically advanced console, they can already get
a Playstation 1 or Nintendo 64 dirt cheap with loads of games.