[Sigia-l] Game Console Business Model (Was: WhatsWrongWithU)

[James Melzer]

I doubt retailers have margins that fine. Most toy retailers double
the wholesale cost to calculate their retail price. You gotta keep the
lights on and pay the staff, after all. I don't know much about
electronics retailers, but everybody in retail has basically the same
overhead.

~ James

On 2/6/07, Dave Chiu <dave at d4v3.net> wrote:
> On Feb 6, 2007, at 5:02 PM, Timothy Karsjens wrote:
>
> > It is the business model of any console manufacturer to lose money
> > on the hardware itself and like a previous poster said, make money
> > on subscriptions and software.  Sony and Nintendo do it as well.
>
> Actually, I was surprised to find out that the Nintendo Wii has a per
> unit manufacturing cost of under $200, which means Nintendo is
> actually making money on their consoles, assuming a retail price of
> $250.
>
> http://www.engadget.com/2006/12/15/wii-manufacturing-costs-ring-up-to-
> just-158/
>
> Dave
>
> ------------
> IA Summit 2007:  Enriching IA
> Rich Information, Rich Interaction, Rich Relationships
> March 22-26, 2007, Las Vegas, NV
> www.iasummit.org
> -----
> When replying, please *trim your post* as much as possible.
> *Plain text, please; NO Attachments
>
> Searchable Archive at http://www.info-arch.org/lists/sigia-l/
>
>
>
>
> ________________________________________
> Sigia-l mailing list -- post to: Sigia-l at asis.org
> Changes to subscription: http://mail.asis.org/mailman/listinfo/sigia-l
>


-- 
James Melzer
http://www.jamesmelzer.com
http://del.icio.us/jamesmelzer