NJ5 said:
jammy2211 said:
What gross profit margin of 20%? It's just as easy for a game to bomb and lose them lots of money as it for them to sell all their stock of just one game at full price. They're not in a position where they make a profit on everything they sell, the developers have control over that as much as they do and you can bet Activision and EA arn't going to let them order 10000 copies, sell them all, order another 10000, sell them all, order another 10000 - i.e. have the most safe, risk free strategy imagineable. There's a huge amount of risk just like any retail industry.
Only spends money on rent and employee wages? Yeah right. If you honestly think that's all the expenses there are in running a multi-national retail chain you're deluded.
I personally have never known a store which relies entirely on first hand video game and console sales to fuel its business, with no other form of media or product at all. Maybe it happened 10 years ago - maybe the margins were better - but in todays climate it would be impossible for such a store to exist.
Just curious, where are you getting your ideas and analysis of the video game retail industry from. I've spoken in depth to this with a friend on the internet - who owned an independent video game store but ultimately was forced to sell it.
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My statements are because I have seen plenty of stores which only sell first-hand games. Even back in the ZX Spectrum era when games were dirt cheap. They're just much more rare today as bigger chains bought them.
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Do you still see any of those stores today?
