You pay 60$ a chip, they pay 1$. They will push as many GH/sec as they can as fast as they can and mine themselves. For them, these chips pay themselves back measured in hours.
If anyone is dumb enough to buy their chips, they will put out several dozen for every one you buy, funded entirely by you.
Scrypt is dead.
+1 i like your ideas
+2 for facts
+3 in a gold rush those who will sell parts will gain most capital. IF this company is legit and can do it, Scrypt mining. Only means there will be +10 more in next 6 months.
Scrypt for GPUs is not dead at this very date and for all gamers out there soon will be good stock of AMD GPUs that can handle all proper games nicely. Very cheap. All this fuzz and valuation of silly altcoins will keep up the GPU mining proftability for those people who want to invest time and focus on it. As power and watts per KH/s GPU mining is dead and ecological disaster. Dedicated chips will do the same Scrypt job with 1/40, then 1/100 and then 1/1000 of the Power cost of a GFX Card.
Also this chip will only currently do Litecoins. +6months there will be least dozen more companys with their chip solutions.
As a GPU miner which i am not. i would seriously evaluate ROI point and resale value to get ride of GPU mining and investing same capital to BTC or something else. Waiting for next wave of hardware mining. Early adopters always gain the benefits. The people who are planning to make 8, 12, 16 GPU rigs now... dont, you are too late. Goldrush is gone.