UA Triple Play

[DAWgEAR]

You could actually buy a Flexi-PAK for $700, use the $500 voucher plus the $100 coupon to get $600 worth of plugs, and then sell the card on eBay for $300. Thus, you just got $600 worth of plugs for $400.

RA

You can get a Flexi Pack for $600 if you shop.

Alternatively, and presumably if one valued the extra DSP more than the $300, if one does not sell the card on ebay, it's like paying $600 for (future) plugins and getting the card itself for free.

 

[Cabbage]

Not necessarily. If you sell large volumes, software is much more profitable, since you have close to no production cost per unit. If you do it online, you have small distribution costs as well.

Also, by now UA have gained alot of experiences in cloning analog HW, so I am sure the development costs of the plug-ins are dropping.

That's not true. Sure the downloads don't cost any money to ship, that doesn't mean you don't have any production costs per unit! Take the new Helios plug... there's licensing, engineers salary for R & D, new driver support, etc.. All which need to be recouped before UA "break even" or even make a profit. On the other hand, the UAD-1 PCI card parts have likely been paid for YEARS ago, given the date of the processor. New software can make money but ultimately DRIVES new hardware purchases. How many posts have you seen here (and elsewhere) where the new Neve plugs resulted in the purchase of an additional DSP card??

/crystal ball mode

Development costs is not what I am referring to as "production cost per unit". Of course those costs need to be covered for hardware and software, so hardware does not have an edge in profitability here.

Generally, large volume software products is the business where you can get the largest profit margins. You just collect licence money and you have little additional costs.

I am not good with examples, but I would imagine that profitability like Microsofts would have been difficult/impossible in any other product selling business (don't know about banking and stuff like that).

Petter

 

[guitarz]

Hey Petter,

I'm pretty sure you're wrong and I'd love to dig up some more info to counter with.... but alas I've already lent my crystal ball to someone over in the Logic forum...