By: Doug S (foo.delete@this.bar.bar), April 21, 2019 10:08 am
Room: Moderated Discussions
Blue (Blue.delete@this.blue.com) on April 21, 2019 3:30 am wrote:
> Doug S (foo.delete@this.bar.bar) on April 21, 2019 12:11 am wrote:
> > Groo (charlie.delete@this.semiaccurate.com) on April 20, 2019 12:37 pm wrote:
> > > Margins on BD/DVD hardware are VERY different from consoles. I got the full rundown on console
> > > economics during the XB360/Best Buy days. The short version is the retailers make roughly zero
> > > on the consoles, normal margins on games, and huge margins on overpriced accessories. If there
> > > are no games to sell, they incentive to stock and sell the console is zero. You might sell an
> > > accessory or two when they buy it but the return visits for games and other things just went
> > > poof. Worse yet if one console has a disc player, guess which will be stocked/pushed?
> >
> >
> > Are brick and mortar sales of consoles really that important in the world of 2020,
> > when anything you want is a few clicks away from being shipped to your door?
>
> Do you think that online retailers margins differ much for consoles?
>
> They still want you to buy games and accessories from them when you purchase the console.
>
> I’m guessing if you order online they try to sell the games to you at the same time.
> Good luck doing that with just game codes.
They don't have concerns over wasting "shelf space" or getting "foot traffic", so as long as the margin is enough for them to make a profit, they will carry it. Do you think Amazon would refuse to sell PS5 under any circumstances? They want to dominate retail, the only reason they'd refuse to stock such a product would be if they introduced an Amazon console that competed with it (which I would not totally discount, I could see them trying to be the "Wii" of the next generation selling under the Alexa brand)
> Doug S (foo.delete@this.bar.bar) on April 21, 2019 12:11 am wrote:
> > Groo (charlie.delete@this.semiaccurate.com) on April 20, 2019 12:37 pm wrote:
> > > Margins on BD/DVD hardware are VERY different from consoles. I got the full rundown on console
> > > economics during the XB360/Best Buy days. The short version is the retailers make roughly zero
> > > on the consoles, normal margins on games, and huge margins on overpriced accessories. If there
> > > are no games to sell, they incentive to stock and sell the console is zero. You might sell an
> > > accessory or two when they buy it but the return visits for games and other things just went
> > > poof. Worse yet if one console has a disc player, guess which will be stocked/pushed?
> >
> >
> > Are brick and mortar sales of consoles really that important in the world of 2020,
> > when anything you want is a few clicks away from being shipped to your door?
>
> Do you think that online retailers margins differ much for consoles?
>
> They still want you to buy games and accessories from them when you purchase the console.
>
> I’m guessing if you order online they try to sell the games to you at the same time.
> Good luck doing that with just game codes.
They don't have concerns over wasting "shelf space" or getting "foot traffic", so as long as the margin is enough for them to make a profit, they will carry it. Do you think Amazon would refuse to sell PS5 under any circumstances? They want to dominate retail, the only reason they'd refuse to stock such a product would be if they introduced an Amazon console that competed with it (which I would not totally discount, I could see them trying to be the "Wii" of the next generation selling under the Alexa brand)