jake_the_fake1 said:
I find the figure on retailer margin a bit too high, from what I've heard back when I was working at EB games, the margin on games is little, which is why EB games ( a.k.a Game stop in America), sell pre-owned as that's where the profit is, otherwise if the margin was so high for retailers then game only retailers would be able to exist with out the need to sell pre-owned games. The last games only retailer here in Australia that never did pre-owened was games wizard and they went under and were bought out by game, which like most sell pre-owned. I would personally take those numbers with a grain of salt. |
I'd have to agree on the retailer margin. Granted most of the data I've seen is from last gen, but at that point it was $5-8 on new $50 games. Perhaps slightly more for huge retailers like wal-mart. New games were pretty much a black hole for small businesses though.
Just realized it was OnLive that made that chart as well. I'm sure they tried to stretch the numbers to promote their platform over retail.