No point competing in a market where low prices mean no one is making money, nor fixing bugs. The biggest asset Mede8er have is their name, and that could be tarnished in such a market.
As it stands every test they do on arm/android/xmbc based kit is it has playback issues compared to the x3d. Other makers either don't have previous models to have comparisons made against, or can't see beyond making another player even if it bankrupts the company.
Even ijf the market fragments, and some people realise they must pay extra to get a decent arm/android/xbmc, the numbers will below those who bought the x3d, as so will pay more than users currently do for an x3d because the development cost will be spread over fewer sales. Indeed the numbers may be so low as to make manufacture totally uneconomic.
That's what happens in a fragmented market, the cheap end gets cheaper, and everything else gets more expensive.
People will start to wish there was only sigma and Realtek competing to make better players, not 10 chip makers competing to dump chips as cheap as possible, on a take it or leave it basis. I'm just surprised when people pay £50 for a box and expect the same level of bug fixing as when they paid £150. They go on about their consumer rights, in the face of ecoconomic reality.
These are my personal views and shouldn't be considered sanji policy.