Sigma Designs reference design

[dialog_gvf]

In a recent debate elsewhere about the cost of producing player, Keith Jack of Sigma Designs had this to say about his company's reference design:

Originally Posted by kjack

Anyway, for our reference design, we figure a BOM cost of $75 + SoC + drive + royalties, regardless of format.

So, I produced the following price model, assuming a manufacturer and retailer willing to accept a rather low margin:

Drive - $100
SoC - $40
Royalties - $30
Misc - $75
Manufacturing and distribution: $20
------------------
Cost: $265

Wholesale (+ 15%): $305
Retail (+ 20%): $366

There is no reason to believe Microsoft/Broadcomm can come down from this any extraordinary amount. So, even being low for the drive, royalties AND the manufacturing and distribution (procurment, assembly and shipping), you can see that a $299 retail target is out of the question currently, let alone a $299 SRP.

Until blue lasers are commodity, that drive price will remain the critical component.

With this, I expect the MS/Broadcom Chinese players to be introduced at $399 SRP.

Gary