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Procrastinato on 31 July 2009
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TheThunder said:
TheSource said:

Well if it cost $850 to make at launch as Isupply said, 70% down would be $255. The thing is...they sell PS3 to retail, who then mark it up to make a profit. So if it is sold for $400 to you and I, Walmart bought it for $340...so it would be about $95 in profit per unit. My issue with it is if they drop the price $50 or $100 then you can buy it for $350 or $300, but Walmart buys it for...$255 or $297. In which case all the gains could be wiped out again. But its hard to say, Sony said that the game division profitability was down this quarter anyway. 

retailers don't even dream about making that much. They only make about $10-$15 per console for years now even software the only make about $12-$15 for a new game sold. The real money is in the accessories and peripherals.

 

I concur with The Thunder.  Retail does not mark up hardware more than a couple % tops.  Software markup is typically around 30%, however.

The PSP Go is about the only console that will ever make the retailers a profit, on hardware, and that's because they won't sell it unless they can mark it up -- because they don't get to sell software for it later.