PS3 Generates 40% of Software Sales in the Middle East

[Immortal]

Nomad Blue said:

Immortal said:

User base wise, of course. That's enormous. But what about the software sold? And the profits? Honestly, selling to developing markets requires you to reduce the profit made on each unit severely. That 10 million probably doesn't amount to as much in profit as 1 million consoles sold would in the US, for example. And by the way, I realize that Nintendo doesn't have the infrastructure to expand there. That's what I meant by "worth distributing to". 5 million Wiis sold in Brazil wouldn't bring enough profit to break even on the cost of distributing them over such a large territory. With Sony, I'm guessing that the established distribution system for its other products is used for the PSs and it just adds on to the overall profit.

Why does selling to developing markets require you to reduce profit severely?  They aren't selling them in the slums of Rio for 10 Reals, they're being sold to the people with money.  Iirc, according to users of this site from Brazil, it's actually cheaper for them to import consoles and games from other countries(like the USA).  So I guess they make a similar amount of profit there as in other markets.

Mind you, I may sound all high and mighty, but I don't actually know anything, :P. I'm just guessing here.

Anyway, countries like Brazil and India probably don't even have that many people to sell consoles to at the same rate as the US or Europe. I recall that PS2s were sold around the price of 5000 Rs. in India quite recently. That's a little over 100 dollars. And it's around such a price point that PS2 flourished. I doubt they make as much money off that as they did off the PS2's prime years in US sellling at 300 bucks. The reason Brazillians import is probably because of taxes. I don't know in which thread, but I recall someone mentioning ridiculous taxes on video games in Latin American countries.