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From: Centarius Software Co.
Subject: Re: Software Etc. inflates game prices (i.e. MW2)?
Newsgroups: comp.sys.ibm.pc.games.strategic
Date: 1995/07/20

Well, Lets see :

2 3.5" DSHD disks = $ .80
1 Manual = $1.00 (rough estimate)
Box $ .40
Printing on box $2.50
labor $ .75
-------------------------
Rough total = $5.45

Add $10 for the CD.

Of course, you have to add in overhead
(rent/utilities/wages/advertizing/etc)

However, our costs are below $20 / copy. $90 for a game seems like a
very large mark up. Assume the following :

Cost of game = $6 (not including overheads)
Royaltys to authors = $5
Game Wholesales at $35

Company makes gross profit of $21 per copy. If the game retails at $45
(which seems to be the average shelf price in my area), there is at
least a $10 mark up. Keep in mind that it kinda works like this :
Publisher sells to wholesaler who sells to smaller wholesaler who sells
to retail store.

Publisher (35) -> Wholesaler (40) -> Wholesaler 2 or Retailer (45)

Perhaps Software Etc. is at the end of several wholesalers, and are
simply in need of a better supply system.

Just my 2 cents

Bob Hubbard
President, Centarius Software