Quoted from CaptainNeo:yes, but the price of those items goes down drastically, when you have production numbers in the 1000's compared to 136. You don't think Jack is banking on selling at least 5000 WOZ's? He's hyped this up so much, you know the numbers are at LEAST that high. if not more. Jack thinks he's the second coming in the pinball world. When you have those kinds of numbers. Your looking at around $10 per game for design and software programing.
It's like having something printed. If you have a 4 color process, they usually charge you $200-250 per color per plate/screen. So right up front your looking at $800-1000. if you make 100 shirts/posters, your costs is going to be astronomical. now make 5000. That charge is insignificant.
It's still fixed cost versus fixed cost. Price of your cost goes down the more you make, of course. However, the cost of starting from scratch and already having a finished product is completely different. Start up would have more up front cost, more labor costs, design costs, etc.