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ils411 on 12 December 2010
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dunno001 said:
pitzy272 said:

Sweet. It's about time! haha. I was just wondering why it seemed like Walmart always did it for 360 but not ps3. Anyways, who takes the hit of that $100 gift card (or $75)? Is it all WalMart/Amazon? Or is Sony taking that money out of their profit? Or both? I don't see how it could be all WalMart/Amazon bc there's no way they even make $75 or $100 on each ps3 sold...

Anyone know?

If I were to guess, it's a cross-promotion between the store and Sony. The margin on the PS3 for retail is, well, bad. (Last wholesale I'd heard was $290 for the $299.99 model.) Sony helps to move more PS3s, and the stores, by giving a temporary loss in a giftcard, can move closer to break-even when it is used. However, I can't see either store taking the full hit, due to the excessive red ink that would be incurred.

This is probably correct. In my past experience when I used to work in retail, price offs/ bundles/ giftcards were all shouldered by the supplier/ distributor. In this case, I'm pretty sure Sony would be shouldering the cost of all the giftcards that would be given out.

In a way, this is a double edge sword for Sony. If it moves a lot of PS3s, this would increase their marketshare and a potential of additional profit in software in the long run but they would be losing $100 now or on the day of the offer on every PS3 that the retailer sells.