| Nuvendil said: My question is...why? I mean, this isn't Microsoft doing this, it's Amazon? I wonder if maybe MS has let them know there's a new standard SKU on the way, maybe a new bundle or something? I don't know, i just find this very odd. It is a good deal though. Still makes me curious. |
i buy a thousand burgers a piece. = 1000$
I sell 600 at 1.50. = 900$
I sell 400 at 50 cents = 200$
100$ profit
Similarly, a game costs a retailer about 45$ at launch, and less as time goes by.
A 400$ console will cost them 360$.
All in all, they can buy the 400$ console for 405 and sell them for 460$ separately.
They can then bundle for 429$
After 5000 sales of each, that is 300,000$ + 150,000$ = 450,000$
They have 1000 of each left that they can now sell for 350 and a controller which they paid 30 for. = 1000 * -80$ =80k
Net= 370k
They clear away the product for new product, and the cycle repeats.
A retailer isn't told when a new product will be replacing the old one, but when the retailer sees a cheaper price for a console, they'll buy a lot, sell with a cut, make profit, and sweep the rest.
x1 is already 350$, so they're likely making maybe 30$ on each one. The game (sales have already peaked) is probably bought for 30$ and the controller is the same. So, for 400$, they've been making profit on the sale of a controller, for every sale.
Tl;dr
This is normal for retailers.
