Nintendo Profit per Console

[drkohler]

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..

No s/he doesn't get reimbursed. That is standard retailer business risk.. do not stock too much stuff to fall into such a trap..  Of course, if console makers would not reimburse retailers, they might lose important customers. In the real world, the big retailers will always be reimbursed while the small guy often gets royally screwed.