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It is interesting to see continued advertising of wholesale PlayStation 3 all across the Internet when the PlayStation in mid November of 2006. With the holidays being full step ahead on Internet sales- we must ask ourselves if there is really wholesale for the newly released PS3. The Internet is full of great people but as always- it has many downfalls when it comes to accurate information concerning wholesale.
You definitely need to understand that most of the time when there are giant companies like Sony, Microsoft, Nintendo and those competing for the video games console leadership, wholesale in release dates is most likely out of the question. Why? Ask yourself from whom major market profits are gained. Do profits with gaming consoles come from the sell of retail or do company profits come from wholesaling newly released items? If the immediate obvious answer is from the sell of retail, why would a company like Sony give approval for immediate wholesale on PlayStation 3 and its accessories?
Fortune 500 companies in the video games business make their primary money from retail, not from wholesale in release dates and on first fiscal years. Especially when various publications from authoritative sources like the Yankee Group estimates that Sony will probably lose $1.7 billion selling PS3s in its upcoming 2007 fiscal year. Can you imagine if the sell of wholesale PlayStation 3 will really hit the definition of wholesale anytime soon? Many of us do not think so.
Better yet, analyst for the Yankee Group also estimate that Sony spends from $700 to $800 to make PS3, thus creating a potential big time loss on every sale each time the consumer buys a PS3 on 2006 holidays and 2007 or, until PS3 developers consider some modifications if needed for its console developing process. Nonetheless, Sony gaming division will not return to a profitable standpoint until millions are sold and revenue from other hardware are then sold. So if this is to be considered as a fact, do you think wholesale is acceptable for big time companies like Sony, for today holidays season or for tomorrow 2007 year? I do not think so.
Next time you start think on hitting a search for a ps3 for this ending holiday season or for our next year, please think on how retail works in revenue and how wholesale really defines its word. The only way an eBay power seller see himself profiting from the sell of wholesale PlayStation 3 today, is just by buying them at regular retail prices and selling them to the mid-class and high class society at prices that are most likely not affordable to the regular consumer this days.
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Source by John A. Roberts
