| outlawauron said: That's ridiculous. I don't understand Wal-Mart can lower the price on hardware as retail doesn't make anything on video game hardware. |
There are two things which help Wal-Mart drop prices. 1) It's all about "Loss Leaders." Every retail company puts front page flyer items on at a loss in order to get people in the door. They hope you buy something else on the way out in order to recoup the losses coming through the door. Wal-Mart runs everyday loss leaders as well as special loss leaders. Their HBA department margins are razor thin, and a lot of those items are sold at a loss. 2) In this specific case, they will ask for a deal price from MS, because it's a big feature in their anniversary flyer. They'll buy a significant quantity, MS will give them maybe a five dollar discount per unit, and in return they will get priority in the flyer over Sony or Nintendo. That is all.
