Also, does Sony profit from the MGS4 bundle? 

Just a question.  If we assume that retailers make a small profit (less than $50?) on actual consoles (as was pointed out in some previous thread) THEN why would Walmart allow a $100 discount?

Does this mean, that Sony had some incentive for Walmart to discount their PS3 systems?

 Also, for bundles, if Sony had to buy MGS4 from Konami (to guarantee some sales), do they profit from the bundle?

If you have some numbers, please enlighten me.  Thanks.

Uh... sony had nothing to do with 100$ gift cards that was a walmart promotion with blu-ray

but it wouldn't make sense for walmart to do it on their own either. Retailers barely make any money off of the sale of the system, discounting it by $100 would be a huge loss.

Wal-Mart deal = Wal-Mart sacraficing profit for revenue and marketshare.

MGS4 PS3 --> SONY needs to pay Konima $10 / whateva reoyalties their is for MGS4. Retail cost, storage cost, SONY's royalties -- all that comes under PS3 cost.

It had nothing to do with the Ps3... it was a BLU-RAY PLAYER SALE

stop making it seem like it was just for the Ps3 they were doing it for.

And it would make perfect sense to give A HUNDRED DOLLAR GIFT CARD because

A. People lose gift cards
B. people don't use the full amount on the gift cards
C. gift cards expire and people dont use them quick enough
D. wal-mart is getting the full amount of the ps3
E. it brings shoppers back to their store.

Drag people in so they buy a PS3 / Blu-ray player. Most will buy a game / movie and some will buy HDTV or other products.

   Its also a gift card so Wal-Mart dosn't lose the full $100, not to mention that some people won't use the giftcard... Retailers will often do promotions like this to boost revenue and market share.

I wont repeat what others have said because Wal-Mart's (and now other store) promotion was just that, a promotion to get more business.

However, I think Sony would have gotten some money if this caused more Sony products to be purchased.

If it was for ALL Blu-Ray players, then it makes more sense. I understand this was just a US promotion and that's why the thread was posted.

I am assuming that margins on other Blu-Ray players are larger than the PS3 - so it would make more sense.

But if it was for the PS3 only, then it does not make too much sense.

NOTE: Manufacturers DO participate in SPECIAL OFFERS in conjunction with retailers. This happens all the time.

My guess is that Sony paid Wal-Mart something toward those gift cards (maybe $90). Also, I think that for the Blu-ray players there is a good chance the Blu-ray promotions group (of which Sony is part) was compensating Wal-Mart for gift cards for standalone players and may have been involved in paying something toward the gift cards for PS3s also. I know that when I bought PS3s (got some for friends) the Wal-Mart employees had to log the gift card numbers on a form where they were keeping track of them. I imagine copies of those forms will go to those who will be compensating Wal-Mart something toward those gift cards.

When Amazon, Best Buy, and other places were having 2-for-1 Blu-ray disc sales last Christmas they were being compensated for the "free" one (at least some of the time).

--Darin

Doesnt that work on top of Sony Cred?

so $200 off?