16.10.06

Explainer: Wii's push, Xbox 360's pull

The information above comes from CompUSA's retail system according to an employee of that company who wished to remain anonymous, 'cept for this link to his or her blog.

The "consumer pays" column shouldn't surprise any of us. What's more interesting is the "retailer pays" column and the subsequent margin percentage (under "retailer keeps"). All else equal, a rational retailer faced with these percentages is going to do a whole lot more to push the Nintendo Wii, because there's more in it for him. Every unit sold will net him higher margin. Though the gross proceeds from each Wii sold are only $12.49 (versus the Xbox 360's $15.78), it's generally a heck of a lot easier to make a $250 sale than a $400 sale.

Joystiq

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