Shouldn't Activision Blizzard be making more money?

[spaceguy]

Miguel_Zorro said:

darkknightkryta said:

Miguel_Zorro said:

darkknightkryta said:

Miguel_Zorro said:

Look at the financials of the companies involves in this industry.  95% of the video game creators and producers are either losing money, or just barely making a small profit.  The retailers aren't making money on games, either.  The economics of the video game industry are broken as they currently stand.

Retailers are making money on games... I recon 20 dollars per game.

You recon?  I *know* they're not.

How do you know they're not?  You work as a retail manager?

My girlfriend works as a category manager for a major electronics retailer.  Before that, she worked for another major electronics retailer.  She states that they make no more than five dollars per game.  In many cases, when they discount/have sales, they sell below cost.  It's a loss leader to drive traffic for other higher margin items.  If she had her way, they wouldn't bother with the category, but the people at the VP level want to continue to play in that space.

I'm worked extensively in analytics for two major diversified retailers, and I've seent he same results.  The profit margin on games is slim to none.

Yea my brothers girlfriend has a  sister  and her boyfriend works at some hugh electronics retailer and they lose 50 dollars off of one game.

blah blah blah.