| Plaupius said: Other than the console itself, those seem pretty standard retail margins, and if you turn them into absolute profit it is clear that the (roughly) ten bucks per sold game is where the retailers make their profits. Touch that and you're on thin ice. That's the point the guy was trying to make, but he conviniently left out any mention of PC retail markups, which I don't think are much better than concoles. So what you're left with is a change in the retail structure of both console and PC gaming. |
Yeah, the question is though, could the Walmart or retailer replace the showspace with something that could make as much money? If it was as simple as just sell items with high margin, then we'd see football fields of retail stores lining the world. Retailers need to have items they don't make as much on. Case in point, I don't usually mind, in fact I usually enjoy, going to a store and looking through their game deals/selections. However, if the store takes that away, I won't go as much. Which means I won't buy as much non gaming related items from the store. Look at the huge discounts surrounding Thanksgiving and December, which are largely designed to get people into their store, and then tell me that retail stores are itching to get away from games. Also, look at the NPD articles about record sales in the gaming industry and tell me nobody wants those $. If they can sell something of higher value they will, but most of the time the two are not mutually exclusive.
