Noobie said:
So you are saying practically 26% - 53% money is lost by Sony. :O so MS having i think XBOX around 129 Pounds.. so its only 60 Pound at the day end.. :O.. Europeans r quite tight on
Anyway if i remember correctly the store margin for PS3 in US on $300 is around $8 - 12.. Yup, around 3 - 4%..
(i will look for the source)
kindly give me your source also.. One is definitely wayyy off. :S
OK here is a link i found for japanese retailer.. which are getting $7.40 (Yen 700) for each PS3 sold..
http://www.destructoid.com/one-japanese-retailer-claims-7-profit-on-ps3-slim-145641.phtml
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The japanese source is almost certainly wrong (disgruntled shop owner) or the $7.40 is the net amount after all expenses are accounted for by the dealer - a net profit of 2% is in line with other sales ares - the food industry (and I think actually WalMart) is roughly in that range. Japan generally has higher cost of living, higher rents and social security costs so I'd even assume that store margins are equal if not higher than Europe.
Store margins are highly privvy in Europe (in one of my NDAs, it was specifically mentioned that giving out such numbers would result in serious court spanking..) and vary depending on the kind of product sold. I doubt any (bigger) shops will tell you anything if asked. For everyday clothing, for example, it was around 33% years ago (might not have changed), rising to 100% for better clothing and reaching 1000s% for haute couture. A game console is located in the standard consumer electronics area where margins hover in the 20%-25% range. Obviously I have only limited knowledge as far as other countries are concerned, but the business models in Europe are pretty identical (particularly since Europe business is governed by large multinational companies like the Mediamarkt/Saturn group. Microsoft probably is a special case since they would lose tons of money on their gaming hardware alone (despite the fact that 120G HDs are $150 here in Switzerland) given the standard margins. However, MS sells a lot more than gaming hardware so they might cross-finance and bundle stuff. Personally I am quite sure that MS loses more money per console than Sony (comparable systems sell around $60-$80 cheaper), but there is no way of knowing without hard data.