Thoughts About Game Prices

Adeno

CAG Veteran
Hi guys:) I've always wondered how much shops like Gamestop, Toys R Us, Walmart, and others actually buy games for in order to sell to the consumers? If an Xbox 360 game usually costs $60, then how much profit are they gaining per game sold?

Just curious:)
 
I'm not sure, but I'll tell you that even though games are ranging from $50-$70 these days, I personally don't think ANY game is worht $60.
 
I seem to recall that just before the Wii Launch we got some numbers on what the stores were paying. $42 for a $50 game is sticking out in my mind, but I have no idea if that's right or not.
 
Usually $5 less than they sell them for (360 games = 54.99, PS2 games 44.99, etc). This is why EB/GS/GC/GR/anywhere else push used games so hard. You look at new games (pay $45, sell at $50) versus used (pay $20 store credit, sell for $45).. the used is where the major profit is.
 
[quote name='daroga']I seem to recall that just before the Wii Launch we got some numbers on what the stores were paying. $42 for a $50 game is sticking out in my mind, but I have no idea if that's right or not.[/QUOTE]

Yeah, I've heard the same - something on that order, anyway. But it depends on the game and publisher too. Also, some retailers get breaks for ordering in larger quantiites/having good relationships with publishers, etc. That is why it is bad for EB/GS to get so huge at the expense of the smaller chains (Gamecrazy, Gamerush, whatever ones they've bought out, etc). They can order more and more and get the discounts while the other stores pay more for their stock.

Now, the argument that games shouldn't cost $50-$70 is a whole 'nother topic. But as long as they ARE priced $50, the end retailer isn't making much off of them, especially when you price match or use coupons ;). Any reduction in game prices would have to start with the publisher though (and one could make the argument that games like Cooking Mama or Big Brain Academy for the Wii might actually make them more money at the $20 or $30 price point than at $50 through much higher sales).
 
From what I recall, CompUSA was paying $42 for third-party Nintendo games, $40 for first-party games. Best Buy's employee discount on a 360 game in one case I was told was $50, which should be their cost. It's really not as bad as everyoneone thinks, just relative to things like TVs and game accessories, it's a tiny margin.
 
when i started working at gamecrazy their computer system still kept track of wholesale prices for games. $20 games averaged about $18, $50 games averaged about $45.

Scorch, this might still work for you, I think it's F7 or something, item information when you're searching game titles, unless they finally upgraded that crappy DOS user interface there..
 
bread's done
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