wiiforever said: johntonsoup said: To add to what everyone else said, there are two good reasons for BestBuy US locations to have more Xbox360 shelf space: 1. The Xbox360 has outsold the Wii LTD in America so far 2. People who buy an Xbox360 may also want to buy an HDTV...conveniently enough, BestBuy sells those too |
good point #2. however, the wii is catching up VERY FAST! |
True, but you got to remember, just because they sell more Wiis, doesnt mean they make more money off it. Profit margins for the retailers on Wiis is small, they literally make 4 dollars per Wii they sell. And if they pay for that with a credit card, they actually end up losing money on the sale due to the credit card transaction fees the store is charged. And not to mention the wii sells less in accessories and peripherals then Xbox 360.
Anyone who has worked on the actually money end of retail electronics (not sales persons, but the people who deal with ordering stock and what not) will tell you that profit margins on consoles are close to nil, and software not much better. (more money is made to the store per new release DVD then for a new release console game, hence why DVDs sections are so friggin huge) You get the most money out of all the accessories, especially the third party accessories(which unfortunetly Nintendo doesnt have much in the way of third party accessories compared to Sony and Microsoft)
This was the issue awhile back when Nintendo was denouncing retailers for selling Wii's as forced bundles. The retailers justified them simply because if they didnt do it, they wouldnt make any money (especially since at the time, distributors were requiring that stores buy 4 games for every Wii they bought. This was causing essentially a problem for retailers, and had to make the bundles in order to make some sort of money off of the Wii.
People think assume just because the Wii is selling like wild fire, its good for the video game industry in terms of money. In reality its really just good for Nintendo, because they are the only ones at the moment that are truly benefiting off the success of the Wii. So far third parties and retailers are having problems trying to tap into the Wii cash cow.