Just to make sure everyone understands. Costco makes money off of everything it sells unless the item is marked down or something crazy happens. Sometimes crazy things happen. My store stopped selling gas for a while because the store GM thought there was too little profit to be made in gas for those few days.
When Costco sells SSBB and SMG for $44, Costco is making money. When it sells Winter Sports, Sonic and the Secret Rings, and FF12 for $16, it is making money. When it sells consoles plus game bundles for $5 less than they would cost if not bundled, Costco is making money. If Costco doesn't think it can make money off something, it doesn't sell them. That is why Costco doesn't really deal with PSP or PSP products.
I highly doubt other retailers are different. I know some retails make tons of money by charging more. Gamestop charged $25 ($5 extra) for the Wii Zapper and ToysRUs charges $22 ($2 extra) for 2000 Wii points.
The margins on extras are highest and the margins tend to be the lowest on new consoles. Nevertheless, unless the retailer is doing great in other areas and thinking about the big picture or someone super strange happens, retails make money on games. Gamestop is making money hand over fist on everything right now because it plans on opening a ton of new stores this year.
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