[ farss yah beat me . . again . .but there is something within the following . . more economics than film - HAH! ]

“Why do the MiniDV decks cost so much.” – If this is your starting point then we can have a discussion. However after asking this “rhetorical” question you then proceed to answer your own question. This is the nature of rhetoric. I’m not sure you want a response or not, but this is my decision, so I’ll take my “lumps” from you when you respond – if you do.

“I mean most of these things cost as much as a GL2 camera”. Correct, sometimes even more. From what I understand a camcorder is not meant to take the rigours use when one is batch capturing – searching, pausing stopping/starting. It is meant to just capture, than at best just be used to download to a pc. Yes, there are the VCR controls for “viewing and previewing” so this would appear to be in contradiction to that which I’ve said above. Be that as it may, over use of these “hunting” processes will reduce the life of the tiny, tiny parts – notably the heads. But I guess you know this already.

“ . . .Now that DV decks are out and more expensive than the cameras, people are saying "well it's supply and demand". “ – well yes. But S&D curves need a little understanding. If supply outstrips demand price’s come down – ie it’s a buyers market. If demand increases and supply remains the same then prices can inflate – viz the Intel/AMD chip wars of the mid eighties and to some extent exist today. But, if a manufacturer can “control” the market, by holding back on production, getting into place trade embargoes, lobbying as an interested party, yes there is always a political imperative dimension to be considered here, then that manufacturer can sit back and be assured that parts and supply of those parts are within their control, then prices too can be controlled. See where this is going?

Then you’ve got the old “R&D” payback. It costs money to R&D. Investors in those companies want returns on their investment – otherwise they jump ship. Stock prices are affected and the possibility of stock values dropping are a reflection on how stock is placed within the market of stocks and shares - again there is a Supply and Demand for the actual stocks themselves.

Product Life. This is a neat one. Companies will have “judged” how much “profit” can be achieved from a product. Products do have a natural “S” curve of profitability. This is highly complex, but for me very fascinating. What do you think the S curve would be for a product like a mid range VTR would be? IMHO as more and more prosumers get going with this DV stuff either they will upgrade to getting a VTR or they will stay put with their cammie and when that “fails” they have the option to buy another OR/AND get a replacement. Oh yes they could also get it repaired. So the S curve starts being stretch out horizontally. Companies regularly review the S curves of products and when the are getting to the top right hand bend of the S they will have considered to “dump” that product; refine that product; reduce the price; . . or many other ways of “propping-up” a profit failing product . . . In any event, that company would have had in place a strategy to counter or improve their profitability in that product or their whole range of products – it’s complex at the macro level, but is very straight forward at the micro level – that is the “buyer decision” – me in a shop!!

Companies just don’t know! This is more common than is realised. Even with all the stuff I’ve said above, there is still the “Finger-In-The-Wind” approach to pricing products.

Okay, I admit this is a very rough sketching out of the background to how things get priced. And some of my analysis to this is most likely a decade out of whack – theories of economics change quite a bit! But I think the basics are there.

I think your “Well duh! What consumer is going to buy a DV deck that costs more than his $600 DV camera.” is very illuminating. It is probably the same question that is asked by those setting prices for these products. If you were in the business of making profit from these products, and in light of what I said above, what would you do?

However, your “Sometimes I look at electronic companies and think "these guys are geniuses", but then sometimes I look at them and think they are a bunch of morons.”, this is mostly the reason I thought greatly about your post. Don’t confuse those that “Create ‘n Make” with those that analyse and determine profits. They have always been very different animals. And then sitting above/sideways or alongside are the legions of managers and executives and ultimately the Chairman attempting to understand the whole picture . . it aint simple . . . There are companies out there that spend much time and money trying to make a better mousetrap. Those companies that invite the end user to sit on their R&D committees, or product test or listen to what the customer actually wants - Better, Cheaper, Quicker – are seen as “Good” companies, but again, it is promoted by the need of that same company to retain their profit growth and their market share.

”I just had to rant a little bit. I think I'm finished now.” – OH yes! Me too! I wanna a reasonably priced VTR. I don’t think I’m gonna get it for a price less than my XM2. There are attempts by the like of JVC who’ve come out with their miniDV-VHS combo at some 50% of the range of miniDV/Full DV combos I’ve researched.

Bottom line here is that these products just don’t have enough of a market to warrant a price reduction and that market that is out there hasn’t defined itself other than splitting into two – maybe more camps. Those that are presently prosumers, and who will eventually migrate to being pros, and they will be buying their next generations of VTRs. And those that are prosumers/enthusiasts who will remain where they are or stop making videos and will wait till their cammie starts to fail and then upgrade to a “better” camera and still not purchase a VTR. I am convinced companies producing VTRs know they have this divided “force” in front of them and will continue in this vein. Profit is all. If there is a need for Customer Service, to assist profit retention, that is a good thing.

Sorry for the long-winded reply. You didn’t ask for one . .

Best regards,

Grazie