Why don't you try reading my first post to start this thread again. You're arguing points I never made. You have no idea what has happened to actual COGS over the lifecycle of the Warhead, nor do you know how the wholesale price has varied as the retail price moved from $299 to $149. It's a safe assumption that both have moved lower. It's an equally safe assumption that margin on Warhead has shrunk as well. Converting legacy inventory to capital for more than you paid for it when you're cash poor is not a bad thing, even if you're not maximizing ROI.
Amazon has the Warhead instock at $254.20 as I type this. I recall seeing it at $149 earlier in November. I think I recall seeing it on sale at $119 somewhere, but I'm not certain.
How will you learn the margin on current Warhead sales from the earnings report?
I am unable to duplicate this search today for some reason. I had to use "Home / View All / Accessories / Headsets & Mics" instead. It returned 775 results. Warhead is ranked #11, but as you stated, is listed as being unavailable online. I search my local zip code and one location reported have the unit in stock. The Universal Kunai is #16, but is also listed as unavailable online. Three local stores report it as being instock. These results make me very curious as to how GameStop's ranking system works.
Thanks for the heads up re "fixed" costs although I'm not sure I agree with your statement regarding margins. Such expenses may not be accounted for in the COGS line, but they definitely factor into the decision concerning what a product wholesales for. Using your 25k production estimate, and a $1M R&D/tooling estimate equates to $40 per unit, It's been 20 years since I designed any injection molded parts, but toolng wasn't cheap back then, and I doubt it's any cheaper now.
Amazon and Gamestop were selling the Warheads at a steep discount earlier also.
I'm sure Microsoft's cut is much higher percentage-wise than that outrageous Android licensing fee for MOJO you pointed out a while back. Why do you always try to pretend to know things you have no knowledge of? Does it make you feel important?
Are you an insider? Do you have ties to the company? Are you somehow privy to knowledge that is unavailable to non-insiders? Feel free to answer honestly. I promise not to give away your secret. It can be just between the two of us.
So you know the specific cost for the batch of Warhead's being sold at $149? How do you know this? Do you have access to "insider" knowledge? What's your connection to the company? What percentage of the Warhead is injection molded plastic? What percentage is circuit board and components? What percentage is speaker? What percentage is 'other'? Have R&D and tooling costs been amortized over previous production runs? Explain how discounting Warhead 40% does not leave MCZ with 30% profit. Show your work.
If they don't, they soon will. It won't take long for the word to spread once the gaming community gets its collective hands on production units.
I sure don't! I kept a spreadsheet updated daily tracking MCZ's top 12 bestsellers on Amazon for nine months, but I could never find a correlation between the data collected and info reported in MCZ's quarterly reports and elsewhere.
TB's PX22 is just ahead at #6. Even with a thin margin (which may or my not be the case...we have no idea the COGS for the run), I'm happy to see these headsets moving from the "inventory" to the "cash on hand" or "accounts receivable" line.
I would guess a minimum production run would be 10k units? At $100 per, that would be a $1M investment. With a $100 cost, and 30% margin, they probably need to sell 100k MOJO's just to recoup R&D/tooling costs. And I bet MOJO will be lumped in with the Mad Catz brand. I'd love to spend a day locked in a room with MCZ's books.
Agree on all points. Let's hope we're correct! ;-)
I definitely consider it "selling out", and regardless of what it says about the longer-term demand or success of the product, in the short term, "selling out" returns all that tied up capital (whatever that amount may be) for use either to produce more MOJO's, or whatever product line is hottest at that point in time. The last thing MCZ needs is a capital tied up in slow moving inventory.
I'm thinking that the Kunai is going to be MCZ's "staple" headset model, and that the supply will be relatively continous. Certain colors may come and go however.
possibility that the MOJO initial production run will sell out, and how legacy products such as the Warhead are selling, I'm liking how the balance sheet appears to be shaping up going into the 4q14 and 1q15.
Lol. You are a true jack wagon fud. The production MOJO hasn't even made it into a purchaser's hands yet and you are already declaring it a failure. Wait until the gaming community has a few weeks to tinker with it. The buzz is going to be deafening.
does that mean that the Kunai (PS4/PS3) is selling really well, or that Amazon just didn't stock many units?