This isn't new information. All the money for retailers is in the software.

Which is why it's always an interesting sign when a retailer independently marks down a hardware item.

Since they're taking a huge loss on it.

@mike your eg. is right miss read sorry

Thanks. It's the PS3 80 GB btw the one for $400

@lustaystru
for a retailer to make money they need to avg between 16%-21% through out the store the mark-up on consoles is all most at cost I'll put it this way if some one steals just one console they would have to sell 20-25 just to break-even

@Kasz216
yes all the money is in the software you can tell this by how much they can lower the price in effect the consoles are lost leaders as store space would barely be paid for

@mjdans
true, but consoles are big and often locked up behind glass so they probably have low shrinkage compared to other video game equipment or software being sold.

@Kasz216
of course the Nunchuck and Classic controller are marked up 27% alone
Wii-Fit at 17.7%

@LuStaysTru

I find this to be one of the best threads as it will help people to understand how much things cost to make though can't you get in trouble at work for this.
oh and whats the avg game mark-up do you know

just noticed that we may have a slight difference in terminology in that the figures that you are quoting I call the margin.

I updated my last post so that the table so that both terms are represented. As far as profit made: one will be right and the other is slightly off.

Oh and thanks for all the info. Pretty well known(though not the exact details given), but very interesting all the same.

one thing all of this proves none of the consoles are toys as they have 100-200% make ups.