Bod, tell us how Forza 2 is selling, as Im wondering how a store like yours would do with such a game. Console profits for retailers: It really depends on the retailer. At launch, the Xbox 360 cost retailers $399.98 per unit, a 1 cent profit per console. Fortunately, the games were around $45 each, for a $60 game, so there was tons of cash to be made on games. For the PS3, I assume no different upto this point. Most likely, and I cannot guarentee this, but with the profits Nintendo is making, I would assume the retailers pay around $225 USD or less for a $249 retail price. For the 360, I DO have a feeling that it's rather cheap - probably $349 or even $299 for a premium. If you notice, many US stores are bundling games or offering Gift Cards - a way to move units, as they cannot sell below MSRP (to my knowledge). I ran a sporting goods store for a few years, and whenever you see a place offering free things with a high-priced item, you can typically assume the markup is rather high, but the manufactuer is keeping prices up to prevent a price war.
Back from the dead, I'm afraid.