This is the videogame piracy business not MS bulk licensing. Video game hardware can hardly be compared to software licensing.
Your ideal goal is to never have to setup a new manufacturing line, you can rebrand old product, but you should never be creating a new SKU cause it requires new parts, and new manufacturing process which raises your COGS, which means your product's profit margin decreases, since the cost of the product stays relatively the same, you can't increase the price beyond what the market can bare. So you end up eating the increases in your COGS, and you lose distributors because they are now sitting on tons of useless product from their last order.
GW and R4I, have it right, they have same product SKU and each year their COGS go down, so they increase their profit margin year after year.
Think about it, SKY+ cost more than SKY R2, and SKY R2 cost more than SKY R1 to manufacture, each revision lowers their profit margin, and they also must eat the cost of R&D and the cost of setting up new manufacturing lines, and the cost of distributor returns for old stock.
Sky is not being smart business-wise, they are good reverse engineers, but bad business folks.
Last edited by KSP,
