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I had an account with a wholesale distributor about 7 years ago and I can tell you that retailers don't make anywhere near $12 on video games... This was when games retailed for $50 but the wholesale price for the games were around $47 so that was about $3 profit for retailers. Now big retailers might be able make deals with distributors because they buy in huge numbers so Wal-Mart might make $5 or more on games.