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Cynic project
Really how much does cyberware cost the big boys? I know that it doesn't cost dell, 3,000 dollars to make a PC,yet they will character you that much. I am damned sure that cars don't cost tens of thousands to make, but they cost that much.

So why do we as players look at cyberware and go, SK spent 100% of the cost listed in the book? Do we some how think that the AAA's aren't in it for the money? THat they do not place prices not based on how much it costs the,but rather how much they can sell the items for?
James McMurray
I don't look at it and think SK paid full price. Gaurds for a company are more likely to have gear that company manufactures, simply because it is a heck of a lot cheaper for them.
Cochise
That's a non-trivial question. For "mass" market products (where "mass" can be quite relative), your assumption that the given prices in the sourcebooks include all profits along the production and selling chain of a market are included is absolutely correct => Those who produce these items will be able to use them at net production cost ... I won't make guesses on how big the profit span overall is, since there's not enough infomation on the SR economics overall to even make a wild guess ... It could be anything between 1% to 99% knock off.

Non mass products tend to be totally different however, especially if the product in question still shows some traits of "prototype state" ...
I for one consider the MbW-technology to be such a case. Just as cybermancy.
The profit margins in terms of money are rather slim. Overall they "currently" provide more information than anything else ...

So in my SR universe a corp like Ares is going to pay for an MbW 4 implant pretty much the same as a runner would (just without street index). The knock off would however lie with medical costs for implantation and post surgery treatment.
Clyde
I figure corps pay about 50% of list cost, without street index, as a rule of thumb. But what they said about prototypes might factor in as well.

Something else you might want to consider is that different divisions and subdivisions in a corp might have separate budgets. The security division of corp X gets a certain amount of money to spend on cyberware. The cyberware research division also gets a certain amount of money to spend developing it. It only makes sense for the cyberware division to implant new combat 'ware into security guys (if it seems reasonably safe, anyway). Might make for a great plotline, actually, pissed off security guards who got saddled with buggy move by wire . . .

Another possibility is saving costs on surgery by having medical students and interns get some live practice . . . . After all, those cyberdocs have to learn somewhere. Tracking down the specter created after a med student botches an implantation procedure he had *no* business attempting alone but which was required to keep his scholarship could be interesting . . . .
hahnsoo
QUOTE (Clyde)
Another possibility is saving costs on surgery by having medical students and interns get some live practice . . . . After all, those cyberdocs have to learn somewhere. Tracking down the specter created after a med student botches an implantation procedure he had *no* business attempting alone but which was required to keep his scholarship could be interesting . . . .

I can tell you from experience that they let us take out the organs, but not put them back in...

It takes about 10 years of education AFTER residency to get to the level of transplant surgery. I don't think even technological advances of 50 years would change that significantly... an intern would be learning basic surgery, not transplant surgery. It's not until they start their fellowship (after 4 years of general surgery) that they even begin to start transplanting organs (gotta learn how to repair hernias, attach blood vessels, etc. first).

I'm not saying that a med student or intern wouldn't be present at a surgery like that. In my 3rd year, I had the unique opportunity to first assist a liver donor removal. But the most I ever did on my transplant surgery rotation was tie up some sutures, all started by my resident.
Teulisch
For most things, a manufactuer sells to a distributer, who then sells to a retailer. If the manufactuer sells to a retailer they charge what the distribuiter would, and they charge a customer full price. so, if it costs X to make, we sell it to a distributer for 2x, who sells it to a retailer for 4x, who sells it to the public at 8x.

of course, the longer a product is on the shelf, the less its worth (depreciation). Each year you get taxed on inventory (unless in a extra-teratorial warehouse), it taking space you could use to store something else, and newer and better products come out all the time.

as for profit, we have to look at not just the cost to make something (raw materials, labor, and electricity to run the plant), but also the investment made in the machinery used, and how much that machinery depreciates in value over time.

So, while Ares may pay X to make a product, the overall cost of making that product will be considerably higher, and they have to sell a large number in order to get back the money they invested.
fistandantilus4.0
If I remember the table correctly in the back of M&M, for the cost of Deltaware, 6x of the multiplier of the 8x cost goes to the surgeon. If I understand it right, alpha is just a better grade of cyber, and the rest is all skill of the doc.
I had to bone up on all of this because I have a player that worked her way up to an 11 biotech with emphasis on cybertech, and is trying to open a delta clinic!
Can you say extraction anyone?

Grinder
QUOTE (Teulisch)
of course, the longer a product is on the shelf, the less its worth (depreciation). Each year you get taxed on inventory (unless in a extra-teratorial warehouse), it taking space you could use to store something else, and newer and better products come out all the time.

So i doesn't really make sense that cyberware is still that expensive? i mean, in 2050, when SR started, wired reflexes cost the same as in 2064.

I only need someone who says that i'm right with that wink.gif
mfb
the wired reflexes on the shelves to day are better than the ones that came out in 2050, because they're SOTA. wires that came out in 2050 have to be upraded and whatnot to work as well as today's wires.
Grinder
Ok, thats a good point. Never thought about SOTA too much, i have to admit. smile.gif

But somehow it sucks. Adepts get all their flashy new powers, mages get initiation and the cyber-guys? more stuff, sure, but the basics are still way too expensive....

Just want to complain a bit. wink.gif
James McMurray
That's the reason our group changed the target number for Treat and Heal to a straight 4 for everyone, and removed the stress rules. WIth those two in place and the adept's ability to buy new powers with karma, there's little reason to be a street sam. Especially in the earlier eras.
Kagetenshi
Given that Delta MBW-IV costs a Runner ¥32,000,000, I'd peg the cost to the corp at… oh, around ¥60,000,000 at minimum.

Eek, the stuff actually does have a permit available. Revise down to ¥30,000,000 to ¥40,000,000 for the corp.

~J
BitBasher
QUOTE (Kagetenshi)
Given that Delta MBW-IV costs a Runner ¥32,000,000, I'd peg the cost to the corp at… oh, around ¥60,000,000 at minimum.

Eek, the stuff actually does have a permit available. Revise down to ¥30,000,000 to ¥40,000,000 for the corp.

~J

erl, so you think a corp takes a 40 million nuyen loss selling a set? Care to explain that logic? Who do they think they are? Microsoft with the Xbox? wink.gif
Fortune
QUOTE (James McMurray)
That's the reason our group changed the target number for Treat and Heal to a straight 4 for everyone, and removed the stress rules. WIth those two in place and the adept's ability to buy new powers with karma, there's little reason to be a street sam. Especially in the earlier eras.

I don't change the healing TNs, but the Stress rules are screwed in that Stress cannot ever be fully healed. In my opinion, removing that one restriction alone goes a long way towards evening things out. Keep in mind that Awakened characters are usually Karma-whores, so Sams can end up with loads more skills, usually at higher levels.
Fortune
QUOTE (BitBasher)
QUOTE (Kagetenshi @ Feb 2 2005, 06:31 PM)
Given that Delta MBW-IV costs a Runner ¥32,000,000, I'd peg the cost to the corp at… oh, around ¥60,000,000 at minimum.

Eek, the stuff actually does have a permit available. Revise down to ¥30,000,000 to ¥40,000,000 for the corp.

~J

erl, so you think a corp takes a 40 million nuyen loss selling a set? Care to explain that logic? Who do they think they are? Microsoft with the Xbox?

Methinks he added an extra '0'. biggrin.gif
Kagetenshi
No, I most explicitly did not add an extra 0. I just don't happen to think that they sell the stuff, not in the to-make-a-profit sense. If they do sell, it'll probably be to the military and involve a battery of contracts that will be worth much more than ¥32,000,000 per.

As you can see, though, I revised my cost estimate downwards significantly after I realized that you could get a permit.

~J
Fortune
I don't think there's any way in hell that each set of MBW (even at the best rating) would cost the manufacturing Corp over ¥30 million.

Remember that a lot of the cost of Deltaware is for the implantation, as opposed to the actual 'ware itself.
Kagetenshi
Well, first off I don't think they'd've nearly paid off the R&D costs, so I'm factoring that in. With regard to implantation, M&M made that a separate cost (not that I agree with that…), so it has nothing to do with the base cost of the 'ware.

I could see it being very reasonable that each functional set of MBW-IV could cost over ¥30 million, though. Maybe that's where the lower-rated stuff comes from; they churn out a bunch of MBW-IV units, have to throw away a bunch because they're faulty, and then sell whatever's left over as MBW I-III.

~J
Fortune
I guess it's something we'll have to disagree about then. smile.gif

I really don't see the feasibility of creating non-Delta (or at the very least, Beta) MBW. In my opinion, this isn't something they churn out in mass production lines. Each one should be built specifically or each individual.
Kagetenshi
Which jacks up the price. I agree, but my point is that they probably create quite a few failed MBW units for each one that gets created successfully; the failed ones go on to be lower-grade or lower-rating units in someone else. Just like most processor companies don't set out to make chips that run slower than their top of the line, they just make some and underclock the ones that fail some of the tests.

To put it another way, just because each one is created specifically for an individual doesn't mean that it ends up in that individual.

~J
Fortune
Oh, I agree with that. My point was their about their original manufacture, not their end use.
Kagetenshi
Right. I'm just also factoring in the reduced revenue from all of those failed units into my price for the perfect model.

~J
Fortune
And I still disagree with your conclusions as to the cost to the Corp, but it isn't really worth it going back and forth on it. biggrin.gif
Kagetenshi
But what good is Dumpshock if we don't spend days and hundreds of posts coming to that conclusion? wink.gif

~J
BitBasher
QUOTE (Kagetenshi)
Right. I'm just also factoring in the reduced revenue from all of those failed units into my price for the perfect model.

~J

Where do you even draw that conclusion? with nano assemblers capale of duplicating things on a molecular level why do you assume there's any failures at all. Modern processes for chip manufacture are even getting away from that. Do you have any IC reference to back up that supposition?
Kagetenshi
None whatsoever. It's entirely possible that that isn't the case, in which case I'd say that the manufacturing process would make it cost that much. Quite simply, I do not see this as a commercial product.

~J
Necro Tech
Agreed. There can't be more than a few hundred people on the planet who have had this done to them. Its outrageously expensive and just can't be cost effective to use. You can use level II or wired III with other enhancements to get similar effects at a fraction of the cost. That stuff is custom only and is like the current generation of cyberware they are putting in people. The basic cybereye (for lack of a better term) is like 120,000$ with parts and surgery and what not. Its custom made and is only used to push the technological edge, not because it is any good.

The guy they put it in pays nothing out of pocket, the hospital and research company picked up the tab because they wanted to test it on humans. I imagine MBW IV to be the same damn thing.
Cynic project
My point was largely the effect of marco marketing on costs, not this one item.

You have your nations,and mega corp who own the doctors,the clinics, and can make or at least buy items in large scales. When you look at the cost of any given item,at one unit and at million units, the prices are not going to break down into 1:1,000,00 raito. Yet, with all the ways the big players in the world could save money, I still see the idea that cyberware,cars or what not will cost them the same amount of money as it would cost a player.
Kagetenshi
It does, though. First you factor in the cost of making the item. Then you factor in the money they're not making by selling it to someone who will pay full price.

You do have a point that stuff like Wired-III will be cheaper to deploy; the barrier will be lower. On the other hand, anything that invasive is going to take a heft bonus for the person gaining the 'ware. Moreover, I don't think those cost savings scale to the highest range of 'ware.

~J
BitBasher
QUOTE
It does, though. First you factor in the cost of making the item. Then you factor in the money they're not making by selling it to someone who will pay full price.
That's bad logic. That only applies if the quantities are limited, and they have a choice between selling it at a discount or selling it at full price. In the case where the quantities are not limited then that item would not have made more profit selling it at full price, that specific object simply wouldn't have existed at all except fo use internally. They are out only the raw manufacturing costs.

Typically the more expensive the item, and the less the item will sell through the more the item is marked up. IMHO it probably costs less than 250k to make MBW 4. Remembers, corps in SR only really have to have the illusion of competition, there's many cases where SR's are used to eliminate the legitimate small upstart that upsets the balance with a superior product for a low cost.
Kagetenshi
eek.gif ¥250k?

~J
Fortune
eek.gif ¥30m?

I'm sure there's a happy medium.
DrJest
Sure, why not? MBW's been around for eight years by SOTA 64, it's reasonable to assume they've streamlined the manufacturing process and got the cost per unit down. And it's not like they have to pay the Delta clinic anything above their usual salary to implant the stuff.

Or you could use the other viewpoint; I used to work for Norwich Union (ack! ack! the Devil!), who are a subgroup of Aviva PLC. Our offices were provided by another company within Aviva. And yet we had a crap contract and insane fees to these people. Extend that to the megacorp; the Cybertechnology unit charges the Security unit a high price for the unit, and the Medical Unit charges through the nose to implant it. After all, each of these is technically a separate company owned by Mama Megacorp, and they all have to show good profits at the end of the fiscal year.
BitBasher
Well, the question was asked how much it costs to make a set of MBW4 for the corp, it didn't ask what the total investment cost was to get to the point where they could make MBW4.

For example If a company puts 200 million in research and development and makes a unit for a manufacturing cost of 300$ and sells it for 3000$ then each unit is NOT sold at a 199,999,700$ loss, it's sold at a 2700$ profit. They just have to sell a good number of them to break even on long term investment.

I don't think the individual manufacturing and material costs exceed 250k for any piece of cyber. We're talking about a world in which computer technology and manufacturing methods are cheap. It may have cost a lot in R&D but that has no bearing on how much a manufacturing megacorp has to spend to get an item for internal use.
hahnsoo
QUOTE (BitBasher)
For example If a company puts 200 million in research and development and makes a unit for a manufacturing cost of 300$ and sells it for 3000$ then each unit is NOT sold at a 199,999,700$ loss, it's sold at a 2700$ profit. They just have to sell a good number of them to break even on long term investment.

I don't think the individual manufacturing and material costs exceed 250k for any piece of cyber. We're talking about a world in which computer technology and manufacturing methods are cheap. It may have cost a lot in R&D but that has no bearing on how much a manufacturing megacorp has to spend to get an item for internal use.

Just another point to add into the mix (some may call it adding fuel to a fire nyahnyah.gif ): The R&D that goes into making a piece of cyberware may have applications in other areas that the corporation is interested in. Part of that R&D would be neural pathway research that could go into making more efficient datajacks and headware. Part of that R&D would be materials engineering which may yield a brand new reflex trigger or some new diode/crystal/doohickey.
Necro Tech
Look at it this way, not all products are sold at a profit. Look at the playstation II. How much does it cost sony to make one? About a dollar less than they sell for. They make tens of thousands of them and it still doesn't get cheaper. They are sold at cost because they are getting their money in licenses from the game makers. MBW IV might be the same way. There are only like 6 or 7 delta clinics around plus who do you think is going to maintain it? They put it in you and they own your meat.

BitBasher
QUOTE (Necro Tech)
Look at it this way, not all products are sold at a profit. Look at the playstation II. How much does it cost sony to make one? About a dollar less than they sell for. They make tens of thousands of them and it still doesn't get cheaper. They are sold at cost because they are getting their money in licenses from the game makers. MBW IV might be the same way. There are only like 6 or 7 delta clinics around plus who do you think is going to maintain it? They put it in you and they own your meat.

That's a really bad example, because you are wholly wrong. Sony does make a profit on every PS2 sold, and they have since it's release. Sony has retooled their factories 3 times IIRC consolidating chips, reducing the die sizes and making it cheaper to produce. You can even see the generations of hardware by their differences if you pay attention. It's estimated sony makes a 30% profit on the PS2 before they were shrunk into their current design, and the margin is higher now, but I haven't seen figures.

In reality their hardware has gotten chepaer and chepaer because they manufacture the parts themselves instead of buying from 3rd parties under contract for most of their parts like Microsoft.

Breaking even is one thing but only two companies have actually sold at a loss on hardware, and those two systems were the Sega Dreamcast and the Xbox. One went out of the hardware business, and the other has lost a few billion dollars. If the Xbox was owned by any company other than MS they would be bankrupt now, not because they have a bad product, but because they cant afford 200 to 300 million in losses every single quarter for 12 consecutive quarters. You can look those figures up.

Your post was a pretty common myth about the game manufacturers.

Even the original PS as it turns out analysts said was sold at a huge loss and it was learned later that it was in fact sold at a small margin due to new manufacturing methods. The same thing goes for the Nintedo Gamecube. Nintendo has admitted they make a small profit on each unit sold.

Also it's not confirmed but inside sources have said then even the new PSP is not being sold at a loss like a lot of speculators believe.
Necro Tech
As I could find no info to the contrary I wont argue.

Instead, cell phones and building alarm systems. Basic ones are given away free by the company you go with. Alarm systems are often installed free of charge to businesses and residences who sign a multi year contract. You get free parts and labor. The company takes the loss because they make out in the long run.

Since this is a low cost item it is still a different animal. Lets take an in game example, the cyber zombie. A hideously expensive monster than costs about as much as a stealth bomber to maintain. As these are only made in-house, the company pays whole sale price for all the parts and personel involved. This doesn't make them very cheap. How much do the magicians involved get paid anually, the surgeons of that caliber, the minders that follow it around, the clinic where it gets its oil changed.

MBW IV delta is custom made per each individual. It is not mass produced. It can only be installed in a realitve handful of places on the planet by a very select few surgical teams. It can't be a big profit item because so few are sold. Its price plus availability (29/135 days) puts it into the realm of corporate or country purchase. Its delta ware so it can only be fixed in a delta clinic, again, making it impractical. Its in the book for the same reason that rigger 3 has big submarines and suborbitals. When the corporation gives it to you they can say, "Since we just put 16,000,000 nuyen.gif worth of hardware in your body for free, you owe us forever. Here's your company t-shirt."
Austere Emancipator
QUOTE (Necro Tech)
Its in the book for the same reason that rigger 3 has big submarines and suborbitals.

When discussing the pricing of items, you don't want to make comparisons to Rigger 3. A Federated-Boeing Eagle VTOL Fighter/Bomber costs 33% less than a Delta MBW-4, and with Kagetenshi's suggested 30 million you could get a suborbital. A suborbital is, or damn well should be, in a completely different class than Delta MBW-4s.
Grinder
QUOTE (Necro Tech)
When the corporation gives it to you they can say, "Since we just put 16,000,000 nuyen.gif worth of hardware in your body for free, you owe us forever. Here's your company t-shirt."

Very good point. I've never seen a character receiving such a "gift" of a corp. I think that's something for very long-running high-powered campaigns. As i never played in such (too many chars i wanted to play...), i never had the possibility to choose sth. like that.
Kagetenshi
QUOTE (Austere Emancipator)
A suborbital is, or damn well should be, in a completely different class than Delta MBW-4s.

And it is. It doesn't require extremely advanced control systems, needs much less precision of manufacture and customization to an individual, and can easily be broken down into smaller parts, many of which will be getting produced for more applications than suborbitals.

~J
Austere Emancipator
Be that as it may, aircraft are insanely expensive. A Boeing 767 costs somewhere around $100-120 million, and technology hasn't lowered those costs much in the last 30 years. A suborbital is going to be far more costly still. Reasonably, we'd be talking about something like at least $200 million (2005 USDs).

What's the smallest mass-produced technological item you can think of that costs $100+ million?
Kagetenshi
QUOTE (Austere Emancipator @ Feb 4 2005, 11:54 AM)
mass-produced

We've found our difference.

Another problem is that in relation to the costs of less expensive things suborbitals have been lowballed by a significant amount, so I'm not sure, in retrospect, that we can really make a comparison between them. No more than we can compare to the price of computer memory or cyberlimbs, at least.

~J
Austere Emancipator
MBW are mass-produced. Delta-MBW aren't, which relates to aircraft as the difference between a run-of-the-mill Boeing 747-200B and the Air Force One(s).

Still, seeing as how the price difference between a Delta-MBW4 and a basic MBW3 is 16x, I'll lower the price a bit. So, what's the smallest mass-produced technological item you can think of that costs $2+ million?

Lowballed by whom? If you mean by the game designers, then yeah, that sort of ruins the comparison. And that was pretty much my point.
Kagetenshi
I'm having difficulty finding production cost numbers on it (shock), but my first thought would be a high-end Cray or the like, so that'd be about the size of a large closet. I'll see if I can think of anything smaller, or find numbers to prove or disprove my guess as to the production costs of the Crays.

~J
Cynic project
Well, here is a little trick corps sometimes use. They sell you an item,that doesn't make them any profit,it may cost them a lot. Then they make items that do make them money. THe items that do make them money are only useable with the items that do not make them money. Take the Xbox. They then go around and make games and ad ons for it.. Xbox,live anyone?

And as I stated in an earlier post it is not just about the MBW4 here. It is also about things like tanks,guns,cyber eyes, cyberdecks...
Kagetenshi
Also with Ares they'd probably mostly use guys with MBW as a selling point for ultra-premium Knight Errant security contracts.

~J
BitBasher
QUOTE
Instead, cell phones and building alarm systems. Basic ones are given away free by the company you go with. Alarm systems are often installed free of charge to businesses and residences who sign a multi year contract. You get free parts and labor. The company takes the loss because they make out in the long run.
This is also an invalid comparison because those are services that require a subscription to use, while Cyberware does not. The two business models are completely different, and not directly comparable.

QUOTE
Since this is a low cost item it is still a different animal. Lets take an in game example, the cyber zombie. A hideously expensive monster than costs about as much as a stealth bomber to maintain. As these are only made in-house, the company pays whole sale price for all the parts and personel involved. This doesn't make them very cheap. How much do the magicians involved get paid anually, the surgeons of that caliber, the minders that follow it around, the clinic where it gets its oil changed.
I have never seen a single instance where a cyberzombie was even attempoted to be used as a commercial venture. Every instnace I have seen of them was for in uhouse use, or mainly aura/integration research.
Kagetenshi
QUOTE (BitBasher)
This is also an invalid comparison because those are services that require a subscription to use, while Cyberware does not. The two business models are completely different, and not directly comparable.

Not at all. Again, you're assuming that they're selling the MBW. Perhaps they aren't, and are instead renting the services of MBW-equipped guards and mercenaries?

~J
BitBasher
QUOTE (Kagetenshi)
QUOTE (BitBasher @ Feb 4 2005, 06:24 PM)
This is also an invalid comparison because those are services that require a subscription to use, while Cyberware does not. The two business models are completely different, and not directly comparable.

Not at all. Again, you're assuming that they're selling the MBW. Perhaps they aren't, and are instead renting the services of MBW-equipped guards and mercenaries?

~J

Um, unless the topic changed without me knowing it... The question asked by the original poster was:

QUOTE
Really how much does cyberware cost the big boys?
Not how much does it cost the end user. That's the question I keep going back to. smile.gif
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