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I_Smell_Tuna

Markup

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IIRC games are sold to retail at a 55% discount.

That's before sale or return deals (i.e. "if it bombs, we only pay for the ones we actually sold on") and product placement "incentives" (e.g. "if you want your game to be in a prominent spot on the shelves rather than side-on and on the bottom shelf, please pay us $xyz,000 for in-store promotion of your title").

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Quote:
Original post by I_Smell_Tuna
How much do retail store (Best Buy, Wal-Mart, EB) markup the game prices? I'm just curious how much profit the retailer sees.

Markup and profit aren't the same thing at all. Retailers get the game at approx 50% of the retail cost but the money they make has to pay rent, rates, staff etc etc etc.

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You might want to check out a book called The Game Plan (Gershenfeld, Loparco, Barajas, 2003), specifically chapter 7 (sub-section "The Deal"). It provides sufficient detail about royalties, markups, etc.

Not that you want to buy an entire book to answer one question, but I need respect the authors' protected material and not simply reprint the contents here (not to mention, the book can be had for about $7 used on the net).

-Razorguts

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