|
Yeah, same reason that VCRs kept getting cheaper. Unless they jack up the licensing fees astronomically you'll see new manufacturers enter the market and existing manufacturers able to price with confidence that they have time to recoup their start-up costs; unlike HD DVD player manufacturers who will end up eating a lot of costs.
If it costs $50 million to set up the manufacturing process and you think you might only have 5 years of selling products off that line your prices will be much higher than if you can assume the basic infrastructure will be going for a decade.
|