How does newegg.com sell games for so cheap?

[GameDude]

For instance, they have SSX 3 for like $25 or so...yet other retailers get the game for $42 and sell it for $50. How does this happen?

[SteveMcQ]

Don't know...Newegg Rocks.

[oddfella]

My philosophy is don't ask question if your getting good deals...

[x0thedeadzone0x]

What they do?! THEY SCAM THEM ALL OFF EBAYERS AND THERE ALL SECRETLY USED AND DON'T WORK, AS THEIR EVIL MINIONS WORK TO LURE THE INNOCENT VICTIMS INTO THEIR TRAPS MUAHAHA, AND PUT LOW PRICES ON GAMES THAT DON'T EXIST IN THEIR INVENTORY!! MUAHAHAHAHHAHAHAHAHAHAH!!!

honestly guys, game retailers get games for about 10-30$ each, depending on how much the game costs initial price. so if they get a game for 10 bucks and sell it for 25 when other stores are selling for 50, not only will they instantaneously sell out but they'll be making a 150% profit. Haven't you seen the corrupt minds of the video game industry? They feed out bullshit that games cost so much money to make these days that they'll have to raise the prices. But factor that in with how many games are SOLD, and they're rolling in cash like you wouldn't believe after all the sales gone through. Point is, their greedy. Maybe newegg.com doesn't want to be completely corrupt, and give the cheapassgamers some good freakin deals. :)

[guessed]

My philosophy is don't ask question if your getting good deals...

Wow, that is the exact opposite of my philosophy.

x0thedeadzone0x: There is a lot of incorrect information in your post, including how much retailers pay for games.

[st0neface]

I'm pretty sure there was a deal made with the Devil, possibly involving all who have bought games from them.

[dtcarson]

In part, being web-only [I assume] and low frills [no or low advertising budget] they can save on overhead, thus passing the savings to you! Otherwise, I don't know.

[Indiana]

A box of SSX 3 games fell of a truck in front of their warehouse... they got them for free? :D

[Theenternal]

newegg has been one of the best dealers for pc and electronic equipment for years, i don't know how they do it, but i hope they keep up the good work!

[Knuckles913]

Hmm. Havn't tried this place. Besides SSX3 (which is coming to me via KB Toys for $25), any specific deals worth mentioning? I've got a GC and Xbox.

[Kaijufan]

honestly guys, game retailers get games for about 10-30$ each, depending on how much the game costs initial price. so if they get a game for 10 bucks and sell it for 25 when other stores are selling for 50, not only will they instantaneously sell out but they'll be making a 150% profit. Haven't you seen the corrupt minds of the video game industry? They feed out bullshit that games cost so much money to make these days that they'll have to raise the prices. But factor that in with how many games are SOLD, and they're rolling in cash like you wouldn't believe after all the sales gone through. Point is, their greedy. Maybe newegg.com doesn't want to be completely corrupt, and give the cheapassgamers some good freakin deals. :)

I jobshadowed at one of the videogame ect stores and I found out that they get their new $50 games for about $45 each, not $10-30. Thats why they give you so little for your used games and sell them for so much. Most likly Newegg gets overstock copies of games for a lower price from a wholesaler, or even perhaps from the puplisher.
This is a topic about videogames wholesale. Its an intresting read.

http://www.cheapassgamer.com/forum/viewtopic.php?t=6475

[stocker08]

it is soo cheap to make those games. it only costs like 5$ to make like a ps2 game...

its just too bad that retailers are soo greedy

[JSweeney]

it is soo cheap to make those games. it only costs like 5$ to make like a ps2 game...

its just too bad that retailers are soo greedy

The cost to press a disk and fabricate a case and label aren't the only costs incurred during the production of a game.

It's just too bad most people are to cheap or to ignorant to realize that.

[Alpha2]

5 bucks to press a game plus the dvd case, the instruction printing, the advertising, the packaging design, and a little extra residual somewhere a long the line its all factored into the price and raised a bit to make the MSRP so the stores can make alittle off of it.

[Mattfish]

it is soo cheap to make those games. it only costs like 5$ to make like a ps2 game...

its just too bad that retailers are soo greedy

Here's a little games industry 101 for you: Video games do not just magically appear on those shiny little "$5" discs. They are the product of countless laborious man-hours from a developer. That developer is funded by a publishing house that often has to put up a huge investment in order for the developers to stay alive and in business while producing the game. Usually by the time games hit the shelves, millions of dollars have been pumped into them, including the development costs, the advertising, as well as publishing costs (pressing a professional CD is not quite as easy or as cheap as burning a CD at home). Put all that together and add in a little profit (developers and publishers are in the business of making money, after all) and I'm sure you'll see that it costs a bit more then $5 for you to enjoy the latest version of Mario Bros.

-Matt

[sman113]

thank you for an eloquent and knowledgable post, Matt.

I dont mind paying $50 for a game (although as a CAG, i never have to again!). But i must admit that CD's for $15 are, in fact, a ripoff.

[st0neface]

It also covers the costs of not only the programmers and designers, but the voice actors, costs for the engine, tools, and benefits for employees. The console maker also gets royalties, and distribution. Along with what Mattfish wrote.

[Mattfish]

It also covers the costs of not only the programmers and designers, but the voice actors, costs for the engine, tools, and benefits for employees.

Yeah, I'd consider all that development costs though.

The console maker also gets royalties, and distribution. Along with what Mattfish wrote.

Oh yeah, I forgot about licensing and royalty costs on consoles. I was thinking about it from the PC development perspective.

-Matt

[lurknomore]

Bump to educate the minions