PS4 bombs in Europe !!?

[dyremose]

speaking as someone who has a part time job in an target sort of store i can give you a basic explanation to how this thing works.

there are basically 2 reasons why a sale is happening.

the first reason is to get rid of stock to make room for a new model..
the second reason is to simply make consumers aware of your store and/or buy something else while inside the shop. a good example could be most TV's we sell. sometimes we make absolutely nothing off the tv's and it even happens on occasion that we loose money on it.. we hope that people then shop croceries and the likes when they are here anyways. it is all about luring consumers in. a special case was the recent ipad air sale where we lost the equivilant of around 100 dollars per unit. of course we aint gonna get that back because the customer then buys dinner at us, but it creates a mentality in the long run that we are cheap and it eventually brings itself back because of the willingness to shop at us. now as you can propably tell the ipad air isnt exactly in need of a pricecut in order for it to sell like hotcakes these days. neither is the ps4.... game systems is even better to do discounts on because people more often than not buys software for it at the same time. i cannot speak for gamestops cut because they are generally more expensive in their software here in Denmark than us, but we profit about a 3rd of the price we pay for it. this pretty balances out the system discount with just one purchase. lots of people (especially the early adopters) buy more than one piece of software when they pick up a system. so if it generates enough more system sales than otherwise it turns out to be even more lucrative for them than if they hadnt done the discount to begin with. please note that there are variables to this statement seeing as scandinavian game prices are quite a bit more expensive than US and even UK titles.