True or Not? Gameboy Advanced sold to retailers for 88 bucks.

[Adul]

http://www.eagb.net/cgi-bin/news/news.pl?action=gen_read_page&id=sSGxsoJ8YN

And they are then selling it for 99. Where is the profit?

 

[AppleTalking]

More than likely it's a loss leader, both for Nintendo and for the retailers. Sell the unit at a small profit (or in some cases even a loss) to get people to buy additional items which have a greater profit, games in this case. The same thing happens with the PS2 and other consoles, as well as internet appliances and the like, except there it's the internet service that they get you with.

Nick

 

[KaOTiK]

Its probably true. Why you think so many places are sellin it the system as a bundle with at least 1 game and other things? Thats where their profit is.

Kao

 

[SuperWrat]

many places are selling the gba for 89.99..... not a surprise, as most consoles rely heavily on games for profits and are willing to establish console base at a loss. (xbox for example...)

altho gba virtually has no competition, mite as well sell higher. but hey, it's better for us!

 

[geno]

the profit will be in those $40 games

 

[Optimus]

Adul - all games systems are sold at little to no profit - the PS2 is sold to retailers at a loss by Sony, and the retailers only make a $3 markup on it! (Sony to retailers - $297, Retailers then sell for $299.99).

The profit in the games industry is all in games and accessories, and some in things like EB's warranty plan.

But because all profit is in games, that just makes pirates even more damaging to the industry!

 

[Demon-Xanth]

Consoles are typically loss bearing items. Although they make $11 on the GBA, they will make another $10 on the two games you are likely to buy with it.

 

[Ferocious]

I agree, the profit is in the games....not the hardware.

 

[beat mania]

$11 each adds up to a lot of money. Prolly will fly off the shelves fast so it won't even take up much inventory space.

Selling some $0.50 gum, now THAT I don't see where the profit is ...

 

[Josh]

They probably want to make the dough off of the games.

 

[mastaki11a]

Just got my GBA today!

 

[BatmanNate]

No entirely true--I'm electronics manager @ Kmart, and we're premiering it on the 13th for 89.99.

 

[ManSnake]

Anyone remember the day of the 3DO launch?? That piece of junk cost something like $700, that was unbelieveable!

 

[MustPost]

Who pays shipping the retailers. If so that takes like almost the whole profit away fro PS2. Yes I relize many retailers have there own trucks