they are still making a profit off the kickstarter backers because what the kickstarter backers are getting is worth less then they paid.
Materials, I used to build chips in my electronics class...in high school. Its not like its hard to do. I used to do it for 2 hours a day. We build all sorts of things. All you do is drill holes in chip boards and then solder the pieces to the places on the instructions. Now in my electronics class we used to draw our chip designs with a marker on the board and then dip it in an etching solution. I think you could do a more sophisticated version of that with a newer printer. There are probably computerized machines that drill the holes in the boards. So, people wouldn't even have to drill each hole like I used to do. Thats where im getting the 100k for machines. It could be less it could be more. Its a high ball estimate really. The 50k for materials. However much the circuit boards and chips cost, i did pull that out of nowhere, i doubt it costs much for the materials. 50k is a reasonable number. 50k each for 20 employees was a high ball because 30k sounds more likely. As I said though, they probably aren't building a factory. They are probably outsourcing, and even so.. all they are doing is repackaging an existing product. All it is is a cellphone in a different box, minus the screen. Nothing ambitious about it at all.
It is however convenient for a casual shopper. Even as a niche product, there are 7 billion people in the world. 80k is not ambitious. If 0.025% of the North American population bought it then it will be successful. If 0.0072% of the European and North American population buy it, it will be successful.
it had 63,000 backers. Thats not counting people who didn't bother putting money in. They don't really need to advertise. Of those 64,000...3668 paid just to have an account they could get for free, 47,125 paid just to get a console, 10,255 paid more then a console is worth to have a special edition, 842 people paid from 700-10,000 for other benefits. Only 59,362 have already bought the console. That is $5, 936,200 sold with some sort of profit. That leaves 2.6 million left for whatever. If they only cost $30 to make like the iPad then that means they only cost $1,780,860 to make total, leaving 6.8 million in profit.
Those 59k people will get their console and they will tell 10 friends each, if only 10% of their friends adopt the console thats 120k console sales. Then add people with $99 wanting a cheap media player/game system. Over a 2 year period they could sell at least a million. **** I remember my brother and I grabbing dreamcast when the price went down to $99. I wanted something to do because n64 was dried up, and my brother wanted a system he could hack.
also, i found this today
http://www.linkedin.com/in/edfriesof course we should take a wait and see look, but I'm optimistic about it.