Stock Gonna Be Like Wii?

[MarkoeZ]

We won't be making ANY money on the first 4000 - we thought we might make a little profit but the global money markets saw an end to that dream. So right now we just want to get it out there.

And after that you WILL start making more (money/pandora's). I can only speak for myself when i tell that at least 5 of my friends/coworkers will end up buying it. The only reason they did not was that there was nothing to show. They did not even believe the specs yet but were very interested. As soon as ppl seee it working it will sell itself.

And one advantage: we all want to play multiplayer wifi against live people, so we will be promoting this thing like Jehova's witnesses on amphetamine






Note: I have a Jehova's witness friend, it's not an insult. Each his own belief.

 

[mrpham]

QUOTE
We won't be making ANY money on the first 4000 - we thought we might make a little profit but the global money markets saw an end to that dream. So right now we just want to get it out there.


Care to explain any further? 4000 units, apparently, were pre-purchased, and I'm assuming the payments have been received for most of them. Yes, the global economy is in a recession, but that simply means interested rates will be further slashed downwards by banks to increase incentive to invest. Unless, that is, the price of the manufactored parts were never legally binded to a contract, which is an extremely uncommon practise in business ventures of any size, and if it were the case that they (the manufacturers) significantly increased prices without Craig and co. being able to do anything about it, then that's just unfortunate.

 

[WizardStan]

QUOTE
We won't be making ANY money on the first 4000 - we thought we might make a little profit but the global money markets saw an end to that dream. So right now we just want to get it out there.

Care to explain any further? 4000 units, apparently, were pre-purchased, and I'm assuming the payments have been received for most of them. Yes, the global economy is in a recession, but that simply means interested rates will be further slashed downwards by banks to increase incentive to invest. Unless, that is, the price of the manufactored parts were never legally binded to a contract, which is an extremely uncommon practise in business ventures of any size, and if it were the case that they (the manufacturers) significantly increased prices without Craig and co. being able to do anything about it, then that's just unfortunate.

Parts for Pandora cost (prices pulled out my butt) 200 USD. That's US dollars, because the sources they're dealing with deal in US dollars. They then pay 700 CNY to the Chinese factories to put them together. That's Chinese Yuan because they're paying Chinese workers in China. Months ago, 200 USD = 100 GBP, and 700 CNY = 50 GBP. GBP of course being the British Pound.
Sold at 199 GBP, that translates to a profit of about 40 GBP per unit. Not too bad. I suspect the original profit was much lower: remember, I'm just making up numbers for the sake of example
Today, 200 USD = 122 GBP, and 700 CNY = 62 GBP. The costs haven't changed, the parts still cost 200 USD and the production costs 700 CNY, but the conversion has. For a 199 GBP console, it now costs them 204 GBP to make.
And just in case I wasn't clear, none of these numbers are real: I just made them up so it would make sense. If I had the actual numbers, they'd make just as much sense, but I don't.

 

[parag0n]

Also, the first batch has to cover the R&D expenses of developing the pandora in the first place, MWeston has been employed full time for a year or so, there are other devs doing there part, prototypes are expensive.

Once they have their debts incurred during r&d paid off, each subsequent batch is far more profitable.