Wii cost 250$,but, how much of that is the store profit, and for other consoles?
Wii cost 250$,but, how much of that is the store profit, and for other consoles?
I believe it's around $5. That's what Makingmusic said GameStop gets.
that's got to be $5 per game, not per console...surely?

Proud Sony Rear Admiral
@Spankey retailers make make more money off software sales then cosole sales.
I believe its around $5 per Wii, $3 per PS3 and $5 - $10 per 360 (they get more for selling Elites).
id also estimate that $60 games net retailers ~$10(new) or ~$25(used, sold at $55)
It just don't make sense I think, I always considering that store have at least 30% of the sales. If a wii cost 250$ they would make of this at least 60$. For games i would guess 20$ per copy.
| Kantor said: I believe it's around $5. That's what Makingmusic said GameStop gets. |
They pay around $3-5 under MSRP to manufacturers, but it usually costs $5-6 to ship the products from their warehouses to stores, so they ultimately lose a bit under a dollar per console sold.
| invetedlotus123 said: It just don't make sense I think, I always considering that store have at least 30% of the sales. If a wii cost 250$ they would make of this at least 60$. For games i would guess 20$ per copy. |
They actually only make ~$15 per game sold at $59.99. The only new products that bring in a substantial amount of money are accessories. For example, a DS3 may cost $4-5 to make. GameStop then buys those from Sony for ~$15 and sells them for $55.
Outside of accessories, games are a pretty low margin business for retailers. That's why all dedicated game stores push used games so hard.
Well, for the DS, I do know that you can divide the price by 20, and that is what the profit is. I've heard that it's a little slimmer on the Wii ($10 is what I've heard). The margin on the 360 Arcade is razor-thin ($4-5), but gets much better as you go up, going to $20 on the Elite. The PS2 gives retailers about $4, and the PSP about $7, but the worst margin of all is the PS3, netting the retailer just $8 for a $400 system. When you factor in credit card fees (1.9-4.5% depending on the company and its contracts) and shipping, most systems are sold at a loss, hence the push to buy something else. I've no idea about what will happen with the PSP Go, but if history prevails, it will net the retailer about $10, and lots of profit for Sony.
They'll sell you a game, sure, but it's their least favorite thing to attach. Typically about 20-25% of the price you pay is retailer markup, making that $59.99 game cost $45-48 at wholesale. It's enough to offset the console loss in some cases. But yes, accessories are their love-child of attachments. (You'll note that some retailers love setting up tables with them.) The markup isn't quite as good as mentioned prior, but average margin is 30-40%, and some third party companies give upwards of a whopping 55% margin on accessories. (Yes, Sony, Nintendo, and Microsoft get nice profits on accessories too.)
Then there's the devil of used games. Brand new games have the "worst" margins; GameStop may pay $27.50 (w/ edge card) for a new game that sells for $50.49 (w/ edge card). And it only gets better from there...
-dunno001
-On a quest for the truly perfect game; I don't think it exists...