I would be nice to have a company (like Outlaw) that offers CUSTOM BUILT simple "Motherboard + Cards" Pre-pro sans the crazy markup.
You want 5.1? No problem.
You don't want old legacy RCA/Optical/Coax connectors? Subtract $250.
So you want only HDMI Inputs, XLR 5.2 Outputs, DTS:X/HD, ATMOS/TrueHD, No EQ, big box chassis, 5YR warranty = $2,000 Pre-pros.
You want 9.1.4? No Problem - add $500.
You want Room Correction (Dirac, ARC, Audyssey, Trinnov) - add $1,000.
fully upgradable by replacing HDMI card (future HDMI version X), Sound Decoder Card (future DTS/Dolby format) ,EQ card, Preamp Output Card, etc.
Lets assume for a moment the above product definition is real..
Then the following basic questions need to be answered..
1. What will be its pricing for retail, dealer, factory FOB?
2. Once pricing is finalized, How many units can be sold? Over what time period?
The other financial factors are:
1. What will be its tooling cost for metal work, circuit boards and cosmetic ID?
2. To develop an AVR or AV processor requires an engineering team of at least 9, 3 hardware, 4 software, 2 mechanical.
3. What is the
time-line? From development start to mass production start? To design, tool, write software, debug software, validate, verify technical compliance, get safety agency & technology approvals, build prototypes, make 2 pre-production runs before MP start.
Some of the basic answers are:
1. 18 Month development time line
2. $650K, Budget for tooling
3. $100K, Royalty, agency certification fees
4. $1.8 million, Financial underwriting for engineering overhead, staff of 10, test equipment
5. $250K, Budget for prototype, preproduction samples
In summary, to develop an AVR or AV processor requires a
minimum investment of $3 million
before any payback of sales $. This is why smaller companies are not able to stay competitive against the higher level Japanese audio brands. They may be capable of building the subject products, but it will always take longer and their technology will typically be outdated compared to the primary Japanese brands.
Just my $0.02...