After reading the artcile wich states that the retailers make twice as much on used games do you guys realise how much more online sales are worth to publishers than retail?
Used sale price= $55
Consumer Credit= $20
Total Profit= $55-$20; $35
Profit from retail= $35/2=$17.5 (for gamestop)
Publisher Profit= $60-$17.5-$10(to MS*); $32.5- $? (hard copy costs)
*I assume its $10 because of the price difference between PC and Xbox360 games here, however some Xbox360 games go for $69.99, so I can't really state how much money goes to the console manufacturer.
If you look at it through margins it is even more significant
Gamestop margin= 1/2($35/$55); 32%
Gamestop's take= $60x.32; $19.2
Publisher Profit= $60-$19.2-$10; $30.8 -$? (hard copy costs)
It is safe to say that for publishers an online sale is worth twice as much. There are also rumors that for developers like Valve that can have a no publisher at all making three times as much. However keep in mind that I did not factor in how much the online distribution stores charge the publisher, ofcourse running servers is not that expensive so I would say that it varies.
EDIT: One of the big reasons Nvidea sales were u was do to their succes in the laptop onboard and discreet GPU market, however I am also sure that their 8000 cards crushed ATI's 2000 series, they were also named forbes company of the year, and I doubt it was because the $10 integrated chips sold so well.
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