Topic: The 3DS Download Card Mark-Up Absurdity

[AnGer]

NinSage is trying to argue that console makers won't be able to get their hardware in stores if they don't let stores sell the games.

Well, in my opinion he's not far off track. I personally have never seen a PSPgo at a shop in my home region and only very few retail stores in Munich or Augsburg have carried the go – mostly large chain stores. It may be a little far-fetched, but it appears to me that at least retailers will try to refrain from selling devices which they can't make more money out of. Though this may be only hypothetical.

[UncleBob]

PSPGo had a *lot* going against it.

I can't buy iPad/iPod touch games, music or movies in stores... yet they're sold EVERYWHERE.

[Kairon]

When the iPod first came out, I believe that people pointed out that it was simply a more expensive MP3 player. Let's not forget that Apple charges top dollar for their products, more than you can get with non-Apple consumer solutions. I think that iPods and iPod touches are sold "everywhere" because they are actually designed to have a sizable retailer margin. Game consoles, on the other hand, aren't.

[NWR_insanolord]

PSPGo had the fact that it was a PSP going against it. Outside of Japan and its weird obsession with Monster Hunter, that system was a total flop. The Go was also more expensive than the other PSP models that had more functionality than the Go. The reluctance to carry it had little, if anything, to do with it bypassing retail for game sales.

[UncleBob]

I think that iPods and iPod touches are sold "everywhere" because they are actually designed to have a sizable retailer margin. Game consoles, on the other hand, aren't.

The margin isn't that great.  The margin on off-brand MP3 players is better - and even then, the margin still sucks.  That's why stores try to push POS headphones, cases and service plans on you at point of sale.

Regardless, if retailer margin is the issue, then console manufacturers can simply lower their sell price to the retailers.  After all, they'll be more than making up for it in software.

[TJ Spyke]

I think that iPods and iPod touches are sold "everywhere" because they are actually designed to have a sizable retailer margin. Game consoles, on the other hand, aren't.

The margin isn't that great.  The margin on off-brand MP3 players is better - and even then, the margin still sucks.  That's why stores try to push POS headphones, cases and service plans on you at point of sale.

Regardless, if retailer margin is the issue, then console manufacturers can simply lower their sell price to the retailers.  After all, they'll be more than making up for it in software.

True, retailers don't make a ton of profit from iPods, Apple makes most of the profits (a huge markup) while retailers get very little. But retailers sell huge amounts of them (over 300 million sold since the original iPod launched in October 2001).

[Kairon]

I think that iPods and iPod touches are sold "everywhere" because they are actually designed to have a sizable retailer margin. Game consoles, on the other hand, aren't.

The margin isn't that great.  The margin on off-brand MP3 players is better - and even then, the margin still sucks.  That's why stores try to push POS headphones, cases and service plans on you at point of sale.

Regardless, if retailer margin is the issue, then console manufacturers can simply lower their sell price to the retailers.  After all, they'll be more than making up for it in software.

True, retailers don't make a ton of profit from iPods, Apple makes most of the profits (a huge markup) while retailers get very little. But retailers sell huge amounts of them (over 300 million sold since the original iPod launched in October 2001).

Ah, thanks for correcting me!

[famicomplicated]

Has anyone mentioned the fact that music/video stores sell iTunes cards? They don't usually sell iPod/iPads at those places either, as Apple has severe restrictions on how their products are displayed/sold.

A $10 iTunes card costs $10. I wonder if the store makes any profit at all on those things?


Also I think this price discrepancy will filter out over time, plus you have to give it to Nintendo, they're the only ones trying to gently ease (ahem) "normal" people into buying digitally. How many of your Aunties/Grandparents gifted you a game on Steam or PSN? Over the next few years we could be seeing every game have a box and d/l card side-by-side, with a few dollars difference (hopefully the correct way by then!).


It may suck a bit now, but things can only get better. Hopefully.

[UncleBob]

Has anyone mentioned the fact that music/video stores sell iTunes cards? They don't usually sell iPod/iPads at those places either, as Apple has severe restrictions on how their products are displayed/sold.

A $10 iTunes card costs $10. I wonder if the store makes any profit at all on those things?

Virtually every store that sells iPods/iPads sells the gift cards.  The profit on them isn't bad - the main reason stores like 'em is because they only pay for them once they sell (i.e.: no inventory) and they take up virtually no space.

I assume, in some kind of all-digital future, stores would still sell the various Sony/MS/Nintendo pre-paid cards as they do now.

[UncleBob]

No.  Online ordering means you can get games on release day w/o leaving your home.
 

I tell you what - you place a pre-order for NSMB2 from GameStop.  I'll download it from the e-Shop.  We'll see who gets our copy first and the other pays for it.

2. As for immediacy, yea, I suppose most games would release digitally by noon and most mail trucks deliver around 3 or 4pm, right? So, boom, there's 4ish hours of advantage for digital release. Whoopetydoo! =P

I got mine about 2 AM this morning.  When did you get your copy?