superchunk said: To Nintendo.. sold and the $21 loss is based on their negotiated price with the retailer, not what the consumer pays. Nintendo sells a wiiu deluxe to walmart for $340. It costs Nintendo $361 to make and distribute the console. THey lose $21. The MSRP is not what a retailer pays. Its just hte suggest price the company wants the retialer to use that accounts for the retailers profit or margin above what teh company is selling the product to the retailer for.
The difference would be if it were a full sale initiated by Nintendo where they gave a reduced price to all retailers and thus told them to reduce the MSRP to some lower price as well. This in fact wouldn't affect the retailers as their margin remains the same but Nintendo is simply making less. In this case since its only Costco, its like a costco initiated thing. |
Ah, that makes a lot more sense. Thanks, SuperChunk!