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Over the last year, I've aggressively introduced pricing considerations into NLE reviews because I'm convinced that the "silicon revolution" in video production will usher in a period of brutal price competition. Ultimately, specialized NLE hardware will range in cost from $500 to $3,500. (IEEE 1394 will be a motherboard feature and will cost next-to-nothing.) NLE software will either be bundled, or cost the same as a sophisticated graphics package, such as After Effects Pro. This means that any NLE solution that costs more than $5,000 will be shunned by those who have a concern for the bottom line. Of course, name-brand solutions and solutions backed by world-class service will be able to charge a premium. Nevertheless, NLE is rapidly moving toward becoming a commodity that will result in a shakeout in the industry.
Major price restructuring typically occurs when a manufacturer introduces a new product - as was the case with the DV500 and RT2000 from Pinnacle and Matrox, respectively. Occasionally, a moderate price decrease is announced to bring a product's pricing into line with other products. For example, Pinnacle Systems' DC1000DV - which I criticized in my review for its high price - recently was reduced in price from $2,700 to $2,000 (see "Pinnacle Systems' DC1000 Rises to the Task of Digital Editing," April 2000, page 102). Rarely will a manufacturer institute a truly dramatic price reduction in hopes of stimulating market demand, as did Sony early in 2000.
Sony reduced the price of its ES-3 NLE solution from $24,999 to $11,999. In fact, if you wish you can buy it online from Sony (without a computer) for only $7,999. At the same time it also announced several new options that increase the ES-3's productivity. I can't remember any NLE being repositioned in such a dramatic way. So, I decided that the ES-3 deserved to be evaluated in light of its new pricing.
Unlike NLE hardware that consists of a PCI board and a breakout box, the ES-3 includes a PCI board and a substantial box filled with electronics. In fact, all video and audio processing takes place in this box. An Ethernet-like cable connects the box to the PCI board. The back of the box is replete with audio and video connectors....