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makingmusic476 on 19 September 2009
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Grimes said:

You have to look at it from the retailer's perspective. You have limited funds to purchase new product.

You can sell the PSP Go and make say a 15% margin and no accessories or games. That means you've tied up $220 to make $30.

Or you can try to sell something else, say a PS3 that makes the same 15% margin. That means you pay $255 to make $45. However you will be able to sell more games and accessories for a 30% margin. It only costs $25 more investment to buy another PS3 rather than a PSP Go and you can sell more profitable product in the future.

Which do you think is the better investment?

Retailers have literally no margin on ps3s.  Nor 360s, and very little on the Wii.

Retailers, much like the manufacturers themselves, generally sell consoles at ethe break even point,a nd soemtiems even at a little loss, because they expect to make that back and then some via games and (most importantly) accessories.  Controllers and cables have probably the highest margin of anything a retailer might sell to accompany said console.