RE: volume discounts (was RE: [MLUG - DISCUSSION] AT&T tiered pricing...)

["Spurling, Shannon" <EMAIL:PROTECTED>]

Even though I'm talking nominal value, and I do understand that inflation is a factor, the cost for them now as opposed to years ago is not that big of a difference.
I guess you didn't hear that Microsoft is taking a big hit on those systems. They were planning to break even a couple of years down the road, and then Nintendo and Sony slashed their prices. Microsoft had to follow suit, and is taking a pounding because of it. There was an article linked off slashdot a couple of months back about that.

Shannon Spurling
WAN Engineer -Specialist

MOREnet, Network Services, Core Network
3212 LeMone Industrial Blvd.
Columbia, MO 65201

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-----Original Message-----
From: King, Jonathan W. 
Sent: Friday, August 02, 2002 12:17 PM
To: EMAIL:PROTECTED
Subject: volume discounts (was RE: [MLUG - DISCUSSION] AT&T tiered
pricing...)



On Fri, 2 Aug 2002, Spurling, Shannon wrote:

> The smaller chips and resistors and wires have not changed in
> price in the last 20 years. Not even the surface mount
> components have changed that much.

By "not changed", though, do you mean in nominal dollars?  If so,
the real cost would be down by a factor of about 2.  Which is
nothing compared to, say, hard drives, but something in the big
scheme of things.  (To put it another way, when a geezer like me
compares the power of todays PCs with a vintage 1984 Mac system that
cost about $1500, I should really compare with something today that
costs closer to $3K, which makes the comparison even more 
unbelievable.)

[snip]

> A certain amount of volume has to flow for all of these to
> become cost effective, as Microsoft has painfully found out from
> their recent entry into the game console market....

What's the pain there?  I thought they had managed to dump a goodly 
number of units out there, albeit at a greater cost than they would
have liked.

jking

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