pixelpixel said:
Why would a company sell anything if they make a loss
. A company will always aim at making profit.
They don't, they sell them subsidised by bundle deals, or because people want the consoles and will end up buying games too.
quarryfied said:
On a £425 machine they are only getting a fiver? you are clearly insane if you believe that! QUIDCO TAKE £25 ON THAT AMOUNT WHICH IS CHARGED TO THE RETAILER!!!! They are making a £20 loss then according to you! lol, i've heard it all now.
So, just a little over ONE PERCENT profit margin? On a scart cable costing twenty quid they only make TWENTY PENCE? HAHHAHAHAH!!!
On a TV for a GRAND they are only making a TENNER?
A game for Fourty quid they only get FORTY PENCE?
Whatever, case closed me thinks!
I'm talking about consoles, why are you bringing TVs into this? Games are also totally different, as I said, that's where they make the money from.
Thankfully you've made yourself look even more of an ignoramous, so all is well in the world.
If you also noticed, I never said about the profit margin on the PS3, but yes, I'd be willing to bet it's not that high either, since the PStwo's profit margin has always been less than £10 for the retailer.
Yup, a really small profit margin, the GBA SP was being sold at around £70, and yes, less than £3 profit for the retailer, helped by games bundles. The Xbox (original) was around £5 profit for the retailer, and the 360 was sold at a similar margin.
It does help having worked in a GAME, Gamestation, and having a friend that did the same (at management level).