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CJ_Parker wrote on Dec 7, 2018, 21:52:Beamer wrote on Dec 7, 2018, 20:51:
Most sales are Amazon, Walmart, or Gamestop. They're selling tens of thousands, and they're getting a 30%-50% margin.
Credible source link for those margins, please.
Here is a post of a guy who claims he worked at GameStop and he quotes $6 to $8 per copy.
And here is an article stating that GameStop was making a 29% average margin on new games while only used games were in the 42% to 48% range.
The higher margins is why Wal-Mart wanted to get into used sales as well. Why would they even bother with used sales (only 9% of the whole market according to the article) if their margin for new games was already as high as you claim? That wouldn't make any sense.
It also goes against the general business practices of these huge retail chains. Their margins are actually mostly crap.
However, because of the sheer volume that they move they usually have generous return agreements and very generous payment targets.
They can usually return all unsold inventory and only have to do a tally every quarter or maybe even only every six months, i.e. they basically get a credit and can work with the revenue they are making like a bank.
RedEye9 wrote on Dec 8, 2018, 10:30:MeanJim wrote on Dec 7, 2018, 23:52:30% never did much for Valve's Q.O.S.
I just hope it doesn't affect the quality of services they provide.
How many years did Valve operate Steam with no refund policy?
How long did it take for Steam to get a semi "useful" help desk for games that won't work on a persons computer, if they ever have gotten such a thing.
Maybe if the take was 30/70 instead of 70/30 (dev/store), quality would go up.
MeanJim wrote on Dec 7, 2018, 23:52:30% never did much for Valve's Q.O.S.
I just hope it doesn't affect the quality of services they provide.
CJ_Parker wrote on Dec 7, 2018, 19:49:
Game stores make $5 to $6 from physical distribution and they carry some huge risks like copies not selling or price drops etc.
Valve gets a nice $20 cut from every full price sale with nary a risk at all.
And they established the 30%, not uPlay, not Origin, not GOG. If Valve had started at 10% then the others would be at 10% as well.
Burrito of Peace wrote on Dec 7, 2018, 14:27:
On one hand: This looks pretty fucking rad and I'd like to play it.
On the other hand: Yet another fucking storefront/game client gating where I can download and play my games from is fucking ridiculous.
On the gripping hand: There is the option of arrquiring it were a person so inclined.
Decisions abound.
Beamer wrote on Dec 7, 2018, 20:51:
Most sales are Amazon, Walmart, or Gamestop. They're selling tens of thousands, and they're getting a 30%-50% margin.
CJ_Parker wrote on Dec 7, 2018, 19:49:MeanJim wrote on Dec 7, 2018, 17:58:Darks wrote on Dec 7, 2018, 15:19:
Yea, well you can first direct your blame at Steam, its their fault all of these developers are moving towards their own distribution platform because of their greedy asses wanting to take 30 percent of their profits. So dont go blaming the devs for wanting to get keep their profits instead of paying them out to Steam.
This is Steams doing!
How is it Steam's fault? Steam takes the same cut as Uplay, Origin and GOG. Do you expect them to distribute games for free? It's far less of a cut than physical distribution.
Game stores make $5 to $6 from physical distribution and they carry some huge risks like copies not selling or price drops etc.
Valve gets a nice $20 cut from every full price sale with nary a risk at all.
And they established the 30%, not uPlay, not Origin, not GOG. If Valve had started at 10% then the others would be at 10% as well.
*snip from that article*In our research of wholesale rates available to small stores in 2017, the lowest price we found — for a new game that retails at $60 — was $49. The highest was $59, and most fell between $50 and $55. So in a hypothetical utopia, a store could make $11 per sale. Yet there are hurdles that prevent them from making even that much.
In most cases, they pay more per copy — of the stores we spoke to, only one has gotten a $49 rate in recent years, and that came with buying a few hundred copies at a time, which many stores can't handle. Stores also have to factor in shipping costs (or gas if they use a local distributor), taxes and credit card processing fees, on top of rent, payroll and the general costs of running a business.
Excluding broader store costs, many locations end up making $5 or $6 per sale, and that's if they sell every copy they bring in. From there, things get more complicated when game publishers decide to lower the game's official sale price before a store sells through the stock it bought at the original rate.
"Video games nowadays price-drop faster than I've ever seen before," says Spenser Brossman at Complete in Box in Ephrata, Pa. "There are times where we'll order a $60 game and a week, maybe a week and a half later it'll be down to 40 bucks."
It makes for a gamble as stores have to guess how many copies they can sell before a game drops in price.
"I always joke to my guys that I always get it wrong," says Brossman.
MeanJim wrote on Dec 7, 2018, 17:58:Darks wrote on Dec 7, 2018, 15:19:
Yea, well you can first direct your blame at Steam, its their fault all of these developers are moving towards their own distribution platform because of their greedy asses wanting to take 30 percent of their profits. So dont go blaming the devs for wanting to get keep their profits instead of paying them out to Steam.
This is Steams doing!
How is it Steam's fault? Steam takes the same cut as Uplay, Origin and GOG. Do you expect them to distribute games for free? It's far less of a cut than physical distribution.
In our research of wholesale rates available to small stores in 2017, the lowest price we found — for a new game that retails at $60 — was $49. The highest was $59, and most fell between $50 and $55. So in a hypothetical utopia, a store could make $11 per sale. Yet there are hurdles that prevent them from making even that much.
In most cases, they pay more per copy — of the stores we spoke to, only one has gotten a $49 rate in recent years, and that came with buying a few hundred copies at a time, which many stores can't handle. Stores also have to factor in shipping costs (or gas if they use a local distributor), taxes and credit card processing fees, on top of rent, payroll and the general costs of running a business.
Excluding broader store costs, many locations end up making $5 or $6 per sale, and that's if they sell every copy they bring in. From there, things get more complicated when game publishers decide to lower the game's official sale price before a store sells through the stock it bought at the original rate.
"Video games nowadays price-drop faster than I've ever seen before," says Spenser Brossman at Complete in Box in Ephrata, Pa. "There are times where we'll order a $60 game and a week, maybe a week and a half later it'll be down to 40 bucks."
It makes for a gamble as stores have to guess how many copies they can sell before a game drops in price.
"I always joke to my guys that I always get it wrong," says Brossman.
Darks wrote on Dec 7, 2018, 15:19:
Yea, well you can first direct your blame at Steam, its their fault all of these developers are moving towards their own distribution platform because of their greedy asses wanting to take 30 percent of their profits. So dont go blaming the devs for wanting to get keep their profits instead of paying them out to Steam.
This is Steams doing!
Darks wrote on Dec 7, 2018, 12:49:
Why is it a shit store? What makes their store any different from UBI's or EA Origin or anyone for that matter?