Retailers Demand PSP Price Drop

[HappySqurriel]

I'll let you all in on a not so secret, secret: Retailers don't really make much money on new videogames, systems and accessories Videogames (in general) have very low margins for retailers and the reasons retailers cary them is because (often) have explosive sales which can be profitable and they bring a lot of people into the store. Currently I'm willing to bet that employees hate the Wii and every company loves the Wii ... it takes no shelf space, it gets a lot of people walking deep into the store to look at a shelf who will (likely) buy something else because they're there. Poor sales for a system means that it is taking up shelf space, doesn't move much volume so the low margin hurts, and it doesn't bring that many people into a store. Currently, retailers have space devoted to the PS2, PSP, PS3, XBox, XBox 360, Gameboy Advance, Gamecube, Nintendo DS and Wii and (likely) want to recaputre some of this space to use for something that will move more units or bring more people into the store; the systems which are most likely to lose space at the current time are the PSP, XBox, Gamecube and Gameboy Advance ... they will still probably have a section, but they will probably be reduced to 1/2 a booth rather than the full booth they have.