Nintendo Profit per Console

[Just_Ben]

Magera said:

Just_Ben said:

TWRoO said:
^ i thought retailers never made money from the console hardware? [or at least negligable amounts... like said above about toys'r'us.

Well not making money does not mean not making any money. The usualy margin for shops on electronic hardware is 15-35% of the price (Europe). From that margin you have to pay your costs, tax, and the risk of a price reduction. I do believe every console has a margin for shops. But it most likley less than the shop would need to survive.

I'm not sure I get you? Risk of a price reduction?

If Sony Sell a unit for $600 then drop the RRP to $500 any retailer that has Excess unsold stock at the $600 value gets re-imburst the $100 drop, as it is a forced loss. If the retailer do a special and sell for less, then Sony has nothing to do with it.

 If it is a console, yes. But thats not the case for TV or other things. And thats why other electronic hardware has a higher margin for shops :)