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Forums - Sales - Wholesale cost of games in Germany

Faxanadu on 21 April 2008
NJ5 said:

I know it's the publisher who sells the game to the customer, but that doesn't change my view much. As I said, I don't have any real numbers to back my opinion, maybe I'm totally wrong.

Regarding your second paragraph, I don't get it. Did I suggest in any way that you were lying? If next time people don't reply to you, don't be surprised. People usually don't like to be yelled at for no apparent reason.

 


now did i yell at you? i didnt realize I could as i am not speaking with you, merely communicating via messages.

the high retail margin also surprised me, as i assumed it would be a lot lower. thats why i wanted to communicate it. why exactly it is that way i dont know - i can assume it has to do with the points i stated above. 



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NJ5 on 21 April 2008
Faxanadu said:
NJ5 said:

I know it's the publisher who sells the game to the customer, but that doesn't change my view much. As I said, I don't have any real numbers to back my opinion, maybe I'm totally wrong.

Regarding your second paragraph, I don't get it. Did I suggest in any way that you were lying? If next time people don't reply to you, don't be surprised. People usually don't like to be yelled at for no apparent reason.

 


now did i yell at you? i didnt realize I could as i am not speaking with you, merely communicating via messages.

the high retail margin also surprised me, as i assumed it would be a lot lower. thats why i wanted to communicate it. why exactly it is that way i dont know - i can assume it has to do with the points i stated above.


Maybe I'm old fashioned, but usual netiquette says that writing in capitals is like screaming. The fact that you referred to my posts as "arguing" didn't help to change that impression either.

Apologies if I misinterpreted anything.

 



My Mario Kart Wii friend code: 2707-1866-0957

Faxanadu on 21 April 2008
Kyros said:
That would actually mean a 100% margin, since they're getting double of what they paid.


Exactly I really doubt it. Many brick and mortar stores here in Germany do not even have the 59.99E price but go higher to 65 or 70 for some games. I really do not think that Sony and the publishers would give them such a high margin.
What I think is far more likely is that different publishers have different prices so that mighty publishers like EA or Activision can get higher prices and small devs need to make it cheaper so stores buy it.

so i have to tell my friend he is a liar and he certainly has not bought MKWii at 30 Eurso from wholesale cause you doubt it?

50 Euros final price minus 20% Tax is about 42 Euros. He bought one single copy from wholesale for 30 Euros (no tax). That means 12 Euros profit margin here. Without the added ops cost of the stores, personnel etc.



Any message from Faxanadu is written in good faith but shall neither be binding nor construed as constituting a commitment by Faxanadu except where provided for in a written agreement signed by an authorized representative of Faxanadu. This message is intended for the use of the forum members only.

The views expressed here may be personal and/or offensive and are not necessarily the views of Faxanadu.

Faxanadu on 21 April 2008
NJ5 said:
Faxanadu said:
NJ5 said:

I know it's the publisher who sells the game to the customer, but that doesn't change my view much. As I said, I don't have any real numbers to back my opinion, maybe I'm totally wrong.

Regarding your second paragraph, I don't get it. Did I suggest in any way that you were lying? If next time people don't reply to you, don't be surprised. People usually don't like to be yelled at for no apparent reason.

 


now did i yell at you? i didnt realize I could as i am not speaking with you, merely communicating via messages.

the high retail margin also surprised me, as i assumed it would be a lot lower. thats why i wanted to communicate it. why exactly it is that way i dont know - i can assume it has to do with the points i stated above.


Maybe I'm old fashioned, but usual netiquette says that writing in capitals is like screaming. The fact that you referred to my posts as "arguing" didn't help to change that impression either.

Apologies if I misinterpreted anything.

 


 sorry, I dont know netiquette. is it edible?

I just wanted to highlight part of my post. next time I take the additional effort of bolding it, not upper casing it. 



Any message from Faxanadu is written in good faith but shall neither be binding nor construed as constituting a commitment by Faxanadu except where provided for in a written agreement signed by an authorized representative of Faxanadu. This message is intended for the use of the forum members only.

The views expressed here may be personal and/or offensive and are not necessarily the views of Faxanadu.

Kyros on 21 April 2008

so i have to tell my friend he is a liar and he certainly has not bought MKWii at 30 Eurso from wholesale cause you doubt it?


Oh get real and relax. Besides you are talking about Wii games? This is a whole different matter MKWii costs 46E at amazon. A margin I find much more likely.

Wii games is another matter. They are cheaper. /PSFanboyMode:on because of that its unfair to compare sales to PS3 games which are much more expensive /PSFanboyMode:off

30Euro to 45Euro sales is a much more realistic margin.



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NJ5 on 21 April 2008
Faxanadu said:

sorry, I dont know netiquette. is it edible?

I just wanted to highlight part of my post. next time I take the additional effort of bolding it, not upper casing it.


Well no matter whether it was bolded, capitalized or just plain, I still don't get the point of that paragraph. All my "arguing" was towards my perceived unfairness on the distribution of profits, not at whether you were telling the truth or not.

 



My Mario Kart Wii friend code: 2707-1866-0957

bdbdbd on 21 April 2008
NJ5 said:
I don't know if I'm seeing the situation correctly, but this is how I see it:

Publishers - they pay a team of dozens (or sometimes hundreds) of highly-skilled people to work for a few years, besides the fixed costs such as rental space, hardware, software licenses, logistics and advertising.

Retailers - they rent a few square meters of space, pay minimum wage to a bunch of (mostly) clueless college students, and spend some money on logistics and advertising.

Of those two, who do you think should have the higher profit? Maybe I'm being naive in my mental picture of each one's costs, but I think it's unfair to have retailers profiting as much or more than publishers do.

Actually your view isn't quite correct, since you could think that the financial risk the retailer takes, is the same in comparision to what the publishers take. The small retailers can't afford to invest high amounts of money for their warehouse and they need to sell x% percent of the games they take in order to remain profitable and every new copy they sell after "x" needs a separate investment, when after selling x number of units, the publisher is getting basically pure profit from every unit they sell. Or another way to put it, publishers invest 10€ per game for the first two hundred thousand copies (with two million dev costs), while retailer invests 30€ per every copy they sell.

Ei Kiinasti.

Eikä Japanisti.

Vaan pannaan jalalla koreasti.

 

Nintendo games sell only on Nintendo system.

Faxanadu on 21 April 2008

Anyways, what I wanted to point out is that the revenue the DEVELOPER makes per game unit sold is smaller than I originally thought - hence the break even is at a larger number of sold units.

@Kyros: Thank you for replying to a thread topic where you dont read the first post.



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FaRmLaNd on 21 April 2008

Bring on vertical integration!



Faxanadu on 21 April 2008
FaRmLaNd said:
Bring on vertical integration!

 I would love a Ninty retail store in my town. That would rock big time...



Any message from Faxanadu is written in good faith but shall neither be binding nor construed as constituting a commitment by Faxanadu except where provided for in a written agreement signed by an authorized representative of Faxanadu. This message is intended for the use of the forum members only.

The views expressed here may be personal and/or offensive and are not necessarily the views of Faxanadu.