Not true. Tivo doesn't (or didn't) lose any money on the making of the units. They also didn't get any money for the sale of those units. It was all the subscription. Correct me if I'm wrong, but Tivo does have something to do with the series 2.

Still, the fact remains that manufacturing a Tivo unit with another chip in it can't cost more than two Tivos, and we're all willing to pay that much. How can you say that's not economical?