Did Sony Profit from the Walmart $100 Discount?

[Bodhesatva]

I Perdict said:

Bodhesatva said:

bumidan said:
So the customer that buys the PS3 (we'll stick with the PS3 since this is VGChartz) from Walmart has to BUY an ADDITIONAL $433 worth of items just so WalMart can BREAK EVEN on this promo/transaction.

That is a very big assumption and does not make too much business sense UNLESS there are other factors (such as manufacturer incentives).

Please feel free to add if there is anything I may have missed.

Obviously you are correct. In such promotions, the manufacturer almost always shoulders the majority of the burden. Which is to say that of the 100 dollars saved in this deal, $80+ of that total cost was shouldered by Sony, not Wal Mart.

Too bad you are factoring in that this was a Ps3 only deal... But really it was blu-ray deal. ANY blu-ray player.

And who shoulders that burden? Primarily Sony.

Look, don't be obtuse. Someone is paying for the 100 dollars that is lost every time a Blu Ray player is sold during the course of this promotion. Wal Mart will  not be that someone, they never are. I would wager that 80%+ of the Blu Ray players sold over the last week were manufactured by Sony (either in the form of standalones or as a PS3). There should be no question that they took the biggest hit from this sale.

We know from Sony's FY report that Sony is losing ~120 dollars per PS3 sold. I would wager that over the last week, that total was ~180-200 dollars.