JDB:

As they used to say in the commercials: STOP, YOU'RE BOTH RIGHT!

Yes, you are correct that the Outlaw's model should, to a great (but NOT total) extent eliminate the marketing costs we both outlined, and it does eliminate margin layers from reps, dealers, etc.

On the other hand (opps -- other PAW) I would guess that the Outlaws don't have the volume that someone like a Samsung does with a large consumer business, or folks that can piggyback a consumer product on the volume for chips and key components of a biz/"road Warrrior" projection business. WHere that puts them is, to some extent, where you project: they are forced to buy from an assembler, putting back in his mark-up to replace the take-out from a web-based sales model. OR, they can build-it themselves or on an ODM basis, but there they pay a cost penalty for the lower margins on key components.

But if you build it yourself or on a custom basis, the problem with video projectors is that there are a few high-value components where colume is key. If you ain't got it, you're gonna pay through the nose for DLP chips, optics (lens/color wheel/pipe, etc), lamp assembly, power supply, high-value chips (scalars, etc.)

Finally, there is the problem that margins for video are BRUTAL and not as comfortable in most cases as they are with audio.

It ain't easy. One can only imagine what the Outlaws are thinking, but presumably they will either find a way around all of this or decide to continue to sit it out rather than bleed out the dollars.

Hey, but what do I know, I'm only a dog!

ARF ARF says Iggy!