By using this site, you agree to our Privacy Policy and our Terms of Use. Close
0D0 said:
The_Liquid_Laser said:

It is true that the console makers subsidize the cost of consoles.  However, the stores don't make a profit on them either.  The margins are slim to none.  Selling hardware is not profitable enough for retailers by itself.  They sell the hardware though, because they can make decent margins on the software.  Take away the software and all of the sudden brick and mortar stores will stop selling hardware.  Then console makers are in deep trouble.  Not even Amazon would sell hardware without the software to go with it.

And of course there is a huge marketing advantage going through a brick and mortar store, especially a specialty store like Gamestop.  Take all of these advantages away and...crash.

Can you elaborate more on that. With more than 100m current gen consoles out there (PS4+X1), isn't that enough sells to justify the market, at least for Amazon and Walmart?

Did you read my post?  I explain every detail in the post.