| Mifely said: (1) Selling a PS3 in-store sells more titles than MGS4, typically in the same sale. $$ profit. (2) $100 gift-card is NOT -$100 profit... its more like -$50, since they aren't selling you items at-cost, just because you pay with a gift card. (3) Giving away gift cards is a tax benefit. take that -$50 profit from above (in #2) and reduce it some more. (4) Walmart is a rural retailer. Sure, you find them in big cities, but they don't dominate there like Target does. They have something of a "rural monopoly". In other words, they sell you a PS3... then who are you going to come back to for more games? ++profit again. (5) Clearing shelf space for the more popular 80GB model bundle -- more PS3s sold in a shorter amount of time.. +profit. ...the list goes on. I don't see how anyone could think Wal-mart was losing money in this transaction, in the grand scheme. Target offered a similar deal, btw, but theirs was not on blu-ray players -- it was on 40GB PS3s, and it was only a $50 gift card. The 40GB units flew off the shelves like jets... probably with a game or two with each console, and future profits expected. Target wins, just like Wal-mart. |
1. Except Sony only recoups a small fraction of the money from each copy of MGS4 while the whole cost of the game remains a loss for the bundle which is still sold at the price of a regular 80GB PS3. Even then, if Sony got to keep 100% of the money from each copy of MGS4 sold, they'd still be losing on the difference between the game and 80GB PS3 since MGS4 is being included for no extra charge. It never ceases to amaze me how people think the games themselves magically produce money from no where in situations like.
2. Again, sloppy logic. Since that is $100 dollars that would have been made otherwise, it's still a $100 loss no matter how you try to spin it. I would be curious to see where you get your made up figures or retail vs wholesale.
3. Really, a tax benefit, let's see some evidence of this and exactly how much it offsets the $100 loss.
4. Rural? You mean like Farm Country? They have a Farmland Monopoly? And, Target bigger than Walmart?
That aside, If any of this were true, then why not sell the PS3 at $100 loss all the time and not just on a special occassion since according to you they're making loads of cash either way. Heck they should sell it at a $200 loss and make even more money! Genius!
5. So selling more PS3's at a loss in a shorter period of time = a profit.
I don't know where you got your mail order degree in business accounting, but I seriously consider getting a refund. Or is this all part of your elaborate scheme to achieve more "profit"?
