Will RE4:Wii Edition meet sales expectations?

[shams]

omgwtfbbq said:

Zucas said:
It's not the companies. It's your damn European taxes that cause it to be so high over there. NOt NIntendo's fault. Blame your governments.

sorry, but we're not in Europe. a 10% GST does not give an excuse for a 100% markup

 

I agree.

I have "dipped" into the distribution market here in Australia. Apart from the OFLC costs ($600) - its not too bad, as long as you have a marketing budget (not really needed with RE4), and retailers will take your product (definitely not needed with RE4).

The manucturing cost (i.e. what Nintendo gets) will be about $10/unit (maybe less). Includes shipping and packaging.

Capcom I don't think distribute directly here, so maybe Ubisoft, Atari or some other company do it for them. Capcom will sell units for about $30AU, distributor will add on another $10 (or so) - and sell units to retailers for around $40AU (educated guess). This may or may not include GST. If not, retailers have to wear the extra $4 (GST on cost of the unit for the retailer).

Retailers then try to implement a 100% markup - their profit, and they take the risk for the title not selling as well. This also gives them space to drop the price to a more budget price in the future.

(they of course have to 10% of the retail price at sale to the government - nice thing, is that as the price drops, the GST the retailer pays does as well).

Lets just hope retailers ordered a large quantity, few people buy at that price - and the price drops quickly.

$80 for RE4 (Wii) is just a pure rip-off.