I'm guessing that the RePlay business plan has 2 other factors.. 1 being market share (ie, having competitive pricing to TiVo even if it means selling at a loss) and 2. subscription revenue.

I know that in the US, Ford lost money on each Escort is sold because it was more important to investors to show they had market share (esp. for an entry level car that might create brand loyalty for when the person "moves up" to an SUV.) As long as there are more Escorts selling than Caveliers, the investors are happy. I could see how this might work for RePlay (brand loyalty) but there is really no compeition for the Central.

But perhaps the biggest differance is the subscription fees from what I can guess. Even if you've been selling hardware at a loss, you can make it up over the years with revenue from the monthly fees. (Remember when the RePlay had no fees but cost more to buy?)

While we're on the topic, the only reason that I havn't purchased a Rio Central is because my empeg works so great when it's hooked up to my home stereo (or anyone's stereo for that matter). I can sit anywhere in the house w. my 802.11b enabled notebook and control what I'm listening to. I guess I prefer using EAC w. Lame also. Guess that empeg was designed too well!