As store closures mount up, is there hope left for physical games outlets?

[The_Liquid_Laser]

0D0 said:

The_Liquid_Laser said:

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

I did, but could you add more? Do you have sources, numbers .. ?

Here is an article I found about how much profit a store can make on hardware and software.
https://nintendosoup.com/much-money-video-game-store-make/

Basically profit margins on hardware are 2% - 5%.
Profit margins on new software are 25% - 35%.

For a big retailer, new software is obviously where the money is at.  Now I have been told that these margins on new games aren't even enough for a specialty store like Gamestop to be successful.  But the margins on used games are more like 40% - 80%.

So any way that you slice it, the money is in the software.  The hardware is just there to get people to come to your store to buy the games.  If you take away the software, then hardware prices would have to increase, so that the stores could sell the hardware at a decent profit.