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Dropping Prices on Games

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Why is it that retailers are willing to gut profits on a Harry Potter book to get sales, but they don't do the same for video games?

The price competition on the last Harry Potter book was unreal, people even selling it at a very real loss to get people in their stores. The publisher still makes the money, the author doesn't hurt one bit. Just the retailers lose out on the deal. One of the biggest selling books of our generation - a phenomenon for sure - make retailers no profit at all. Why isn't this the same for other items of similarly high demand?

Take for example the Halo 3 video game. Microsoft and Bungie get all of the profits, but in this case, so do the retailers. There are a few incentives out there (free shipping, 1600 LIVE points) to get people to pick it up at their store, but in the end the price still sits amazingly close to MSRP. This is the Harry Potter book of video games, and yet the customer pays full price. I want to know who is going to step out there and sell this game for $30, who will drop it to wholesale to get people into their store for everything else they will purchase along with it.

I could get a $35 book for $12, but this $60 video game sits firmly at $60. There must be some economic rule here I'm not understanding. Anyone out there know?

JG

posted by Joshua Griffin @ 9:28 PM |

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3 Comments:

At 9/03/2007, Blogger Kevin said...

I like using Ebay to find a good price on games. I picked up Marvel Ultimate Alliance for my Wii for $38 instead of the $59.99 price in all the stores.

 
At 9/03/2007, Blogger Kevin said...

I'm posting this comment so that nobody is confused in thinking that I would buy Marvel Ultimate Alliance. Sorry Kev, the preview was off the charts on the boring-meter. However, eBay is definitely the way to go.

 
At 9/04/2007, Blogger Kevin said...

You're right... actual game play was pretty boring... but the story was fantastic. I enjoyed the story more then most comic movies.

 

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