Interesting analysis of Gamestop revenue...

[Slimebeast]

Ail said:

Slimebeast said:

Ail said:

Slimebeast said:
I would estimate they pay less than $40 for a $60 priced game.

 

Less than 40$ seem very doubtfull, my estimate is around 45$, if they payed less than 40$ their gross profit on new games would be higher, not mentionning how little the publishers would be getting for the games...

 

 I'm terrible at economic terms. .. I dont know exaclty the definition of "gross profit" and "gross margin".

Remember also that even though the games are $60 as new, the average selling price of a game is significantly lower during it's course. You have to include all the games that start at $60 but end up selling the bulk of their sales from the bargain bins.

Well a 40$ or less game would end up leaving less than 25$/game for third parties publishers, that seem low.

Gamestop doesn't have that much bargain bin sales of new games either, they order a minimum number of copies and then push prospective buyers toward their used games. It's not in their interest to have too many copies of a new game.

That was very useful info. You are right, the bargain bins are very tiny in Gamestop shops (called Game here in Europe), meaning that the proportion of sales at $60 should be pretty high and thus the average selling price. So maybe $45 is possible. That would be great.

Btw, why is it that this number is so hard to get? I mean there must be thousands of people working in game stores knowing how much they pay to the distributor, and u'd think a few of them had posted this on forums like this already. But I still only ever see speculation about this and no facts.