I think that Sand Video (before Broadcom bought them for approximately $77.5 million) is an existence proof that you can do a dual-decode MPEG-2 and H.264/AVC chip for nominal cost. I know that their paid-in capital was nowhere near $100 meg, in fact I have reason to believe it was much, much less than that (but more than $1 meg, of course). Manufacturing is a different story, and integrating the actual video decoder core with other functional units for a real product offering is different yet. -----Original Message----- From: opendtv-bounce@xxxxxxxxxxxxx [mailto:opendtv-bounce@xxxxxxxxxxxxx] On Behalf Of Ralph P. Manfredo Sent: Wednesday, February 09, 2005 11:49 AM To: opendtv@xxxxxxxxxxxxx Subject: [opendtv] Re: Pros/Cons of DSP processor based MPEG softwaredecoder or hardware based MPEG decoder While $3.3M may be a bit shy, it is much closer than the $300M you claim. I would venture to guess to design a new MPEG chip would cost between $5M and $10M. If your figure was accurate, there would be no one making chip based decoders, much less codecs except Intel and IBM. Sigma Designs, ATI and others would not be in the business. The volume needed to make a profit would be enormous, or you sell a few chips at huge cost until development costs are covered then have a large cost reduction. Maybe sell 300,000 chips at $1,000 each, or 3M chips at $100 each. Let's see, that means the first STBs with these new chips should only cost between $1K and $10K. Remember, the STB vendors have to add other components and IP to make a product and they have to make a profit also. Ralph Ralph P. Manfredo President and CEO rmanfredo@xxxxxxxx ************************************************************************ BroadBand Networks Corporation 2530 Berryessa Road, No. 237 San Jose, CA 95050 Phone: 408.988.2060 Fax: 408.988.2188 Cell: 559.289.2669 www.bbnc.com Leaders in MPEG-2 and MPEG-4 video over ATM and IP Networks ************************************************************************ -----Original Message----- From: opendtv-bounce@xxxxxxxxxxxxx [mailto:opendtv-bounce@xxxxxxxxxxxxx] On Behalf Of Craig Birkmaier Sent: Wednesday, February 09, 2005 8:47 AM To: opendtv@xxxxxxxxxxxxx Subject: [opendtv] Re: Pros/Cons of DSP processor based MPEG softwaredecoder or hardware based MPEG decoder At 8:15 AM -0800 2/9/05, Keith Jack wrote: > > A chip to handle HDTV quality level encode/decode can > easily > cost $100 million to develop. > >Your number is about 30x too high. Otherwise, smaller companies >wouldn't be able to do it, yet they are.> What we see today are >multiple approaches to this question. So you are saying that it is possible to develop and have manufactured a highly complex ASIC that handles both MPEG-2 MP@HL encode and decode for about $3.3 million? A bit unrealistic I think. Regards Craig ---------------------------------------------------------------------- You can UNSUBSCRIBE from the OpenDTV list in two ways: - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line. ---------------------------------------------------------------------- You can UNSUBSCRIBE from the OpenDTV list in two ways: - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line. ---------------------------------------------------------------------- You can UNSUBSCRIBE from the OpenDTV list in two ways: - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line.