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Member since May 2011 · 2485 posts · Location: Brisbane
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Subject: Retailers unsatisfied with PSPgo margins?
Over on ArsTechnica there's an article talking about how retailers are unsatisfied with the profit margins on the PSPgo, and it mentions a rumour that EB is refusing to stock the system in Australia.  Similar stories are coming from Spain and Holland, they say.

That does not surprise me.  Of course this must all be evaluated carefully - no doubt the retailers could be angling for better pricing from Sony, but unless things have changed since I ran a gamestore in Canada, there never have been margins on hardware: We sold PS1 systems for $199 that cost us $192 to get in from our supplier.    Seven bucks profit for a two hundred dollar system?  That's insane, and the razors/blades theory doesn't wash either, IMO: people go where the games are cheap, and buying a system from ME didn't mean they'd ever buy GAMES from me afterwards.

But we stocked them anyway, 'cause it was far better to be seen as a game shop that had stuff people wanted to buy, than one who was successfully reducing the customer's happiness/success rate by only stocking stuff with a good margin.  If someone came in and got what they wanted, they'd remember us favourably. 

But if I was selling them PSPs, I think they'd like us as much as the poor kids who bought Neo Geo Pocket systems from us.   That is to say, they'd blame us for the manufacturer delivering a rubbish product.  If a product is desirable, the shops will stock it anyway.* Terribly sorry, Sony, but I can't blame any retailer who doesn't want to flog your dead horse, especially with shitty margins.

So yeah, schadenfreude FTW.

* Assuming the shop isn't run by a retard.  Most Australian shops don't understand the concept of customer service at the best of times, but many places here have minimum charges for debit or credit card transactions.  The local kebab shop has a $10 minimum if I want to pay with my EFTPOS (interac) card, but a full kebab combo is only nine bucks.  Better to have no money than slightly less, right?  Not so in Australia.  Seriously, it's stupid.
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EB haven't out and out boycotted it yet, but we sure as shit aren't stocking ti for the launch. The only reason we make money is because of the profit on software, and pre-owned sales. You can't get either of those with the PSPgo. Oh, that and it's a heap of shit, and only asian people play them anyway.
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