Quote:
Originally posted by Matthew Hill:
Yeah, but isn't there still the initial capital outlay to design the thing? Are they basically giving away their R&D work to Eastech in return for lower per-unit manufacturing costs?

Matthew,

I don't think Outlaw is "giving away" anything. They're simply striking a deal with Eastech that is mutually beneficial to both companies. Since we don't know the details, I'm guessing that Outlaw is letting Eastech OEM their (Outlaw's) design in exchange for a better price and a period of exclucivity. Eastech gets a new product to sell; one that is already creating significant buzz. Outlaw gets to grab the lion's share of their market before the competition shows up; and even after competition comes along, Outlaw will still be able to keep the price of their competitive.

If Outlaw sells lots of their 950 processors, it still won't be a bad thing for Eastech. In fact they'll be able to use the 950's popularity when shopping their OEM unit to companies, like Atlantic Technologies, that want to sell a processor but aren't in the processor business.

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Sanjay
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Sanjay