[opendtv] Re: Pros/Cons of DSP processor based MPEG softwaredecoder or hardware based MPEG decoder

  • From: "Tom McMahon" <TLM@xxxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 9 Feb 2005 12:12:47 -0800

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

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Phone:  408.988.2060
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-----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
 
 
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