once and for all, it is not a $30 loss for VC

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  • Radja
    MVP
    • May 2003
    • 1972

    #1

    once and for all, it is not a $30 loss for VC

    i cannot believe how many people think it is a $30 loss for sega. they charge distributors a reduced rate to sell thier games. the store makes the remaining profit.

    for instance, sega charged ditributors, game stores for the slow OSer's, around $20 last year for the game. the store recieved the remaining $30.

    this year they are probably charging $10. the store will earn the last $10.

    sega/vc/take two need to sell only DOUBLE the copies to make the SAME MONEY as last year.

    i feel it is safe to say the game is going to sell at least that much. so they will lose nothing compared to last year.

    distributors will make money because now the game will move. they didnt order a lot of copies last year. very few pre-ordered. this year a lot are pre-ordering. that is what they will base the initial supply on. then they will tell thier people to push it along with madden. especially if the person hedges at the price of madden, they will be told about espn.

    game stores dont care they dropped the price. they dont care if it takes selling 3 lower cost video games to make up the money. they just look at what moves off the shelves.
  • sportsgeist
    MVP
    • Apr 2003
    • 1941

    #2
    Re: once and for all, it is not a $30 loss for VC

    With a $20 price tag they'll most likely sell double the copies too. They can do this because they're aren't paying an over the hill broadcaster/coach to put his name on the game.

    Comment

    • sportsgeist
      MVP
      • Apr 2003
      • 1941

      #3
      Re: once and for all, it is not a $30 loss for VC

      With a $20 price tag they'll most likely sell double the copies too. They can do this because they're aren't paying an over the hill broadcaster/coach to put his name on the game.

      Comment

      • sportsgeist
        MVP
        • Apr 2003
        • 1941

        #4
        Re: once and for all, it is not a $30 loss for VC

        With a $20 price tag they'll most likely sell double the copies too. They can do this because they're aren't paying an over the hill broadcaster/coach to put his name on the game.

        Comment

        • dapperdan
          Rookie
          • Aug 2003
          • 41

          #5
          Re: once and for all, it is not a $30 loss for VC

          That's it exactly, they just have to pay the Terrel Owens and that's basicly it. Oh yeah, what about those Celebs? I'm sure the small role won't cost a lot, plus they promote the game to the casual gamers.

          Comment

          • dapperdan
            Rookie
            • Aug 2003
            • 41

            #6
            Re: once and for all, it is not a $30 loss for VC

            That's it exactly, they just have to pay the Terrel Owens and that's basicly it. Oh yeah, what about those Celebs? I'm sure the small role won't cost a lot, plus they promote the game to the casual gamers.

            Comment

            • dapperdan
              Rookie
              • Aug 2003
              • 41

              #7
              Re: once and for all, it is not a $30 loss for VC

              That's it exactly, they just have to pay the Terrel Owens and that's basicly it. Oh yeah, what about those Celebs? I'm sure the small role won't cost a lot, plus they promote the game to the casual gamers.

              Comment

              • dump
                Rookie
                • Mar 2004
                • 85

                #8
                Re: once and for all, it is not a $30 loss for VC

                </font><blockquote><font class="small">Quote:</font><hr />
                Radja said:
                i cannot believe how many people think it is a $30 loss for sega. they charge distributors a reduced rate to sell thier games. the store makes the remaining profit.

                for instance, sega charged ditributors, game stores for the slow OSer's, around $20 last year for the game. the store recieved the remaining $30.

                this year they are probably charging $10. the store will earn the last $10.

                sega/vc/take two need to sell only DOUBLE the copies to make the SAME MONEY as last year.

                i feel it is safe to say the game is going to sell at least that much. so they will lose nothing compared to last year.

                distributors will make money because now the game will move. they didnt order a lot of copies last year. very few pre-ordered. this year a lot are pre-ordering. that is what they will base the initial supply on. then they will tell thier people to push it along with madden. especially if the person hedges at the price of madden, they will be told about espn.

                game stores dont care they dropped the price. they dont care if it takes selling 3 lower cost video games to make up the money. they just look at what moves off the shelves.

                <hr /></blockquote><font class="post">

                radja, your numbers are kinda low... the price the stores pay for $50 is closer to $40... not $20(!) I have a friend who worked @ EB...

                Either way, if you double the units, we're talking the same amount of money - end of story... I bet they'll triple the units!

                Comment

                • dump
                  Rookie
                  • Mar 2004
                  • 85

                  #9
                  Re: once and for all, it is not a $30 loss for VC

                  </font><blockquote><font class="small">Quote:</font><hr />
                  Radja said:
                  i cannot believe how many people think it is a $30 loss for sega. they charge distributors a reduced rate to sell thier games. the store makes the remaining profit.

                  for instance, sega charged ditributors, game stores for the slow OSer's, around $20 last year for the game. the store recieved the remaining $30.

                  this year they are probably charging $10. the store will earn the last $10.

                  sega/vc/take two need to sell only DOUBLE the copies to make the SAME MONEY as last year.

                  i feel it is safe to say the game is going to sell at least that much. so they will lose nothing compared to last year.

                  distributors will make money because now the game will move. they didnt order a lot of copies last year. very few pre-ordered. this year a lot are pre-ordering. that is what they will base the initial supply on. then they will tell thier people to push it along with madden. especially if the person hedges at the price of madden, they will be told about espn.

                  game stores dont care they dropped the price. they dont care if it takes selling 3 lower cost video games to make up the money. they just look at what moves off the shelves.

                  <hr /></blockquote><font class="post">

                  radja, your numbers are kinda low... the price the stores pay for $50 is closer to $40... not $20(!) I have a friend who worked @ EB...

                  Either way, if you double the units, we're talking the same amount of money - end of story... I bet they'll triple the units!

                  Comment

                  • dump
                    Rookie
                    • Mar 2004
                    • 85

                    #10
                    Re: once and for all, it is not a $30 loss for VC

                    </font><blockquote><font class="small">Quote:</font><hr />
                    Radja said:
                    i cannot believe how many people think it is a $30 loss for sega. they charge distributors a reduced rate to sell thier games. the store makes the remaining profit.

                    for instance, sega charged ditributors, game stores for the slow OSer's, around $20 last year for the game. the store recieved the remaining $30.

                    this year they are probably charging $10. the store will earn the last $10.

                    sega/vc/take two need to sell only DOUBLE the copies to make the SAME MONEY as last year.

                    i feel it is safe to say the game is going to sell at least that much. so they will lose nothing compared to last year.

                    distributors will make money because now the game will move. they didnt order a lot of copies last year. very few pre-ordered. this year a lot are pre-ordering. that is what they will base the initial supply on. then they will tell thier people to push it along with madden. especially if the person hedges at the price of madden, they will be told about espn.

                    game stores dont care they dropped the price. they dont care if it takes selling 3 lower cost video games to make up the money. they just look at what moves off the shelves.

                    <hr /></blockquote><font class="post">

                    radja, your numbers are kinda low... the price the stores pay for $50 is closer to $40... not $20(!) I have a friend who worked @ EB...

                    Either way, if you double the units, we're talking the same amount of money - end of story... I bet they'll triple the units!

                    Comment

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