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Old September 15th, 2004, 08:04 AM
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David E. Gervais David E. Gervais is offline
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Default Re: US: Stop Congress from making iPod or VCRs ill

FYI: In the game industry it's a rare thing where a publisher gets to determine the final product price. That responsibility falls on the retailer. There is such a thing as a MSRP (manufacturer's Suggested Retail Price) But there are laws against "Price Fixing" (here in Canada at least) So if a retailer buys a game for 32$ it can sell anywhere from $39.95 to $79.95. It all depends on what kind of markup the store wants. When I Managed a computer department I would mark up the games at approximately 100% ($32 = $64.95) With good clients (AKA 'Regulars') I'd go as low as $49.95 which was still a healthy mark-up. and with the everyday crowd, I'd be nice and sell the game at $59.95. Everybody is happy to get a discount, even a $5 dollar one. Bottom line the retailer is the one who has 'room to bargain' the developer and publisher generally get about $10/game after expenses.

An Online publisher is a rare breed that does get to set their retail price, and although most Online publishers make a 'healthier' profit, their sales tend to be on the short side. For example, a game is considered a success in retail if it sells 100,000 copies, compared to about 15,000 copies by an Online publisher. Sure the publisher and it's developers can and do make a good living this way, but they have a struggle getting their products in the mainstream.

Nuf said, Cheers!
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