The End of NewSpace

NewSpace, started by the X-Prize, is now officially dead. But all is not lost.

Boeing has announced that starting in 2015 it will offer commercial space flight to paying customers.

Yes, Boeing is getting in on what the X-Prize started. Remember however that the X-Prize offered a $10 million purse. $10 million is probably less than Boeing pays for staplers in a year. $700 staplers on govt. contracts of course...

But yeah, this really is the beginning of the end... or is it the end of the beginning?

I would go with the latter.

Back when the X-Prize was won, people thought commercial flights would come only a few years later. 6 years have gone by, and Virgin Galactic--which is based on Space Ship One--still has yet to make a flight into space, let alone a commercial flight. None of its major competitors are any further along.

The entrance of Boeing does not spell the end of the road for these companies. Rather, I think it signals to potential investors that flying people into space is a worthwhile business opportunity: more money should be flowing to the little guys now rather than less. The potential market is huge, and Boeing's entrance signals credibility, and maturity.

So NewSpace is dead, but long live NewSpace.