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Forums - Microsoft Discussion - Retail Rakes it in after 360 Price Cut

antfromtashkent on 20 March 2008
kingofwale said:
NJ5 said:
kingofwale said:
>Probably the games that are making $15+ that go with the systems that get sold...

my retailer (biggest in US when it comes to electronics) makes no profit in games either.

Unless you sell used games by ripping off little kids who traded them in...

So are you telling us your retailer makes no profit from being in the games business, save perhaps for accessories? ...

 


 exactly.  Accessories is what makes the most money for most retailers. They do make money on games, but not enough to cover their operating cost.


What do you think Gamestop decided to sell used games? That's how they make money


yuh i was in retail for a while. accesories is the big one.

 



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kingofwale on 20 March 2008
Darmetrius said:
From what I know from working at a distribution center. A new game has a markup ranging from 9-15%, the kicker is that older game say a best sellers title will have anywhere from a 25-70% markup on it. Accessories can have huge markups on them even exceding 100%. Game systems are pretty well a break even or a couple %.

 Pretty much what I've been saying the whole time. and the same stories from everyone who has worked in retailer so far. And yet people just refuse to accept the fact. Such pointless ignorance.

 

Thanks, lovely baby, btw. 



Soriku (Feb 10/08): In 5 years the PS3/360 will be dead.

KH3 bet: "If KH3 comes to Wii exclusive, I will take a 1 month of sig/avatar by otheres open a thread apologize and praise you guys' brilliance." http://vgchartz.com/forum/thread.php?start=50&id=18379
Original cast: Badonkadonkhr, sc94597 allaboutthegames885, kingofwale, Soriku, ctk495, skeezer, RDBRaptor, Mirson,

Episode 1: OOPSY!
selnor: Too Human I even expect 3-4 mill entire life and 500,000 first day. GoW2 ( expect 7 - 9 million entire life and over 2 mill first day), Fable 2 (expect 5-6 million entire life and 1.5 mill fist day) BK3 (expect 4 - 5 mill sales entire life and 1 mill first day).. Tales/IU/TLR should get to 2 or 3 million! post id: 868878
Episode 2:
Letsdance: FFXIII (PS3+360) first week in NA = 286K
According to pre-order rate in week 13 (post id: 2902544)
gebx on 20 March 2008

TO SUMMARIZE KING OF WALE!!

 

working at a retailer myself, my company makes almost no money (in fact at a loss) selling console hardwares.

my retailer (biggest in US when it comes to electronics) makes no profit in games either.

The Biggest U.S. Electronic Retailer makes NO money on Games or Consoles

 

 

Remember, retailers have to pay for shipping fees,

and then they have to ship them to every store individually? not to mention packaging. labeling, and high shrink number (people stealing them).

Retailers have special delivery trucks that ship only video games. Labels and Shrink Wrap are Very Expensive!!

 

 

Big retailers like bestbuy or Targets frankly have the whole gaming department in the red.

BestBuy and Target have a gaming departments for shits and giggles



Proud Member of GAIBoWS (Gamers Against Irrational Bans of Weezy & Squilliam)

                   

kingofwale on 20 March 2008
gebx said:

TO SUMMARIZE KING OF WALE!!

 

working at a retailer myself, my company makes almost no money (in fact at a loss) selling console hardwares.

my retailer (biggest in US when it comes to electronics) makes no profit in games either.

The Biggest U.S. Electronic Retailer makes NO money on Games or Consoles

 

 

Remember, retailers have to pay for shipping fees,

and then they have to ship them to every store individually? not to mention packaging. labeling, and high shrink number (people stealing them).

Retailers have special delivery trucks that ship only video games. Labels and Shrink Wrap are Very Expensive!!

 

 

Big retailers like bestbuy or Targets frankly have the whole gaming department in the red.

BestBuy and Target have a gaming departments for shits and giggles


 feel free to twist all my words, but the truth remains, retails don't make profit from console and game alone.

Now you have two choices... 1. Listen to everyone who has experience at retail and their stories. or 2. Choose to believe what you want and live in ignorance.

 When it comes to cold-hard facts, it's not something you can win by debating it.



Soriku (Feb 10/08): In 5 years the PS3/360 will be dead.

KH3 bet: "If KH3 comes to Wii exclusive, I will take a 1 month of sig/avatar by otheres open a thread apologize and praise you guys' brilliance." http://vgchartz.com/forum/thread.php?start=50&id=18379
Original cast: Badonkadonkhr, sc94597 allaboutthegames885, kingofwale, Soriku, ctk495, skeezer, RDBRaptor, Mirson,

Episode 1: OOPSY!
selnor: Too Human I even expect 3-4 mill entire life and 500,000 first day. GoW2 ( expect 7 - 9 million entire life and over 2 mill first day), Fable 2 (expect 5-6 million entire life and 1.5 mill fist day) BK3 (expect 4 - 5 mill sales entire life and 1 mill first day).. Tales/IU/TLR should get to 2 or 3 million! post id: 868878
Episode 2:
Letsdance: FFXIII (PS3+360) first week in NA = 286K
According to pre-order rate in week 13 (post id: 2902544)
fkusumot on 20 March 2008
kingofwale said:
 

It's really hard to take what you just said seriously, considering you offered absolutely no insight to the topic or suggested any other meaningful argument.

Profit margin is a hard number, you either get it or you don't. Maybe go into the field and ask your local employee to find out yourself?


It take it you don't make it a habit of reading 10-k filings. Go ask an employee in the field at one store? That's a bit like asking the guy at Burger King flippin' burgers how to raise a cow.

I Blame Wii Fit!

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Auron on 20 March 2008

I am awaiting the numbers for 360 for this week to see how big of an impact it really was. On topic: why would they hw and sf if they make no money?



Dolla Dolla on 20 March 2008

I know this is risky, but I'm gonna post ON TOPIC. Regardless of profit, retailers love it when a product that they have sells well. It brings in extra business with the possibility of customers buying MORE (software, accessories). Thus making retailers happy. Makes sense? I think so.



Threads of Interest:
The Movie Thread: http://www.vgchartz.com/forum/thread.php?id=6880
The Crow Eating Thread: http://www.vgchartz.com/forum/thread.php?start=0&id=3886
The Betting Thread: http://www.vgchartz.com/forum/thread.php?start=0&id=7104
Custom GIFs Thread: http://www.vgchartz.com/forum/thread.php?id=18963
The Greatest Game Ever Conceived On Any Platform
Tag: "I have tasted Obi-Wan's bitter tears"

kingofwale on 20 March 2008
fkusumot said:
kingofwale said:
 

It's really hard to take what you just said seriously, considering you offered absolutely no insight to the topic or suggested any other meaningful argument.

Profit margin is a hard number, you either get it or you don't. Maybe go into the field and ask your local employee to find out yourself?


It take it you don't make it a habit of reading 10-k filings. Go ask an employee in the field at one store? That's a bit like asking the guy at Burger King flippin' burgers how to raise a cow.

 and yet forgetting that not everyone lives in US? Frankly, I've come to expect you to not offer anything that would remotely come to be useful to a topic.

Maybe once in a while, actually STATE your arguments and back it up with facts? 



Soriku (Feb 10/08): In 5 years the PS3/360 will be dead.

KH3 bet: "If KH3 comes to Wii exclusive, I will take a 1 month of sig/avatar by otheres open a thread apologize and praise you guys' brilliance." http://vgchartz.com/forum/thread.php?start=50&id=18379
Original cast: Badonkadonkhr, sc94597 allaboutthegames885, kingofwale, Soriku, ctk495, skeezer, RDBRaptor, Mirson,

Episode 1: OOPSY!
selnor: Too Human I even expect 3-4 mill entire life and 500,000 first day. GoW2 ( expect 7 - 9 million entire life and over 2 mill first day), Fable 2 (expect 5-6 million entire life and 1.5 mill fist day) BK3 (expect 4 - 5 mill sales entire life and 1 mill first day).. Tales/IU/TLR should get to 2 or 3 million! post id: 868878
Episode 2:
Letsdance: FFXIII (PS3+360) first week in NA = 286K
According to pre-order rate in week 13 (post id: 2902544)
kingofwale on 20 March 2008
Auron said:
I am awaiting the numbers for 360 for this week to see how big of an impact it really was. On topic: why would they hw and sf if they make no money?

 What dolla said, Imagine if you walk into a retail electronic store and they tell you they don't carry any products that they can't make a decent profit for? What would be your reaction as a consumer?

This is the real world of retail. I don't know why everyone's so reluctant to accept it. Would you rather pay huge mark-ups for games?



Soriku (Feb 10/08): In 5 years the PS3/360 will be dead.

KH3 bet: "If KH3 comes to Wii exclusive, I will take a 1 month of sig/avatar by otheres open a thread apologize and praise you guys' brilliance." http://vgchartz.com/forum/thread.php?start=50&id=18379
Original cast: Badonkadonkhr, sc94597 allaboutthegames885, kingofwale, Soriku, ctk495, skeezer, RDBRaptor, Mirson,

Episode 1: OOPSY!
selnor: Too Human I even expect 3-4 mill entire life and 500,000 first day. GoW2 ( expect 7 - 9 million entire life and over 2 mill first day), Fable 2 (expect 5-6 million entire life and 1.5 mill fist day) BK3 (expect 4 - 5 mill sales entire life and 1 mill first day).. Tales/IU/TLR should get to 2 or 3 million! post id: 868878
Episode 2:
Letsdance: FFXIII (PS3+360) first week in NA = 286K
According to pre-order rate in week 13 (post id: 2902544)
fkusumot on 20 March 2008
kingofwale said:
 

and yet forgetting that not everyone lives in US? Frankly, I've come to expect you to not offer anything that would remotely come to be useful to a topic.

Maybe once in a while, actually STATE your arguments and back it up with facts?


I guess you just missed my first post even though you responded to it. I know not everyone lives in the US. You, for instance, live in Canada.

I Blame Wii Fit!