PSN Cards Provide No Profit for Retail Stores
Profitability for retail outlets was an issue brought up when the digital distribution-exclusive PSPgo was announced. Because retailers made no profit from the PSPgo media, in regions such as Europe where PSN cards were unavailable, brick-and-mortar shops claimed the PSPgo would suffer.
Unfortunately, this is not the case. According to Japanese retailer Games Maya, “[They] don’t see a single profit,” because “That [PSN] card becomes a voucher”. In other words, since consumers are actually getting $20 on the PlayStation Network, they’re only paying $20 at the shop–which is the same amount the store pays for each card they sell. On the other hand, Microsoft and Nintendo give room for retailers to profit because of their credit system rather than using real currency.
Despite Sony Computer Entertainment America’s Eric Lempel claiming that retailers are “embracing” the PSPgo, American retailers have yet to comment SCE”s practice of digital distribution.
[Source]
12 Responses to “PSN Cards Provide No Profit for Retail Stores”
There’s no way retailers pay the same price as the consumer. That makes no sense.
if the retailers pay the same price as the consumer that’s a fail on there part IMO
First off, I call bullshit on this one. Maybe Sony and XBOX have retailers by the balls. Maybe they said sell our God damn cards or we pull our games from your store. This would be death for Sony and the retailer so I doubt it. Sony is probably giving them some sort of spiff. Sell a $20 card and we’ll give you $1 of it.
I want to put another question out there: Why doesn’t sell voucher codes online? Why not just eliminate the cards and have and online system? You remove print costs, shipping costs, blah, blah, blah… They could set it up with Firepay, Neteller, PayPal, Credit Cards, or a zillion other online payment options.
The source is Kotaku not a retailer..
in college i worked in Bestbuy for 4 years and they wanted to push giftcards that also includes PSN cards. My friend who worked in 7-eleven was told to push network cards (including) PSN cards because it was pure profit for them..Bestbuy is very profit crazy, the managers walk around with a pad showing how much there profit % there gaining threw out each sale. PSN cards and giftcards from Bestbuy or not are higher profit for the store. They had there own section printed from the computer to track how many are sold..
No revenue for you!
@Shadowjin
The giftcards are only pure profit until they’re used to buy something, which I’m sure nearly all of them are. The margin on the giftcard itself is high, but not in terms of the bottom line. The same applies for the services they offer (calibration, installations, etc.).
As far as PSN cards go, I’m not sure how those would turn a profit for the company.
@ Steven Garcia
bestbuy gets a % what ever that % is.. i could care less but i know they do..they had store meetings specifically pushing the PSN cards almost as bad as PSP (product service plan).
When bestbuy had someone try out Netflix card and connected them from the store (less than 2min job) the store gets 5$ ………..thats an example.
I refuse to believe this… There is no way a retailer would tie up thousands of dollars just for the privilege of stocking these things. I’m guessing the more the store buys the better the value – you know, volume discounts like every other thing in the merch universe?
@FiftyQuid – These cards are meant to replace online methods because not everyone has a CC (or wants to use their CC online). Why shouldn’t a 14 year old be able to walk into Gamestop with a $20 and buy PSN credit? Great for birthday presents and things like that also; I wonder how many pairs of socks were avoided as presents due to some relative knowing about PSN cards…
Playasia makes profit on that.
if you sell JPN PSN cards in the US, you can make big profit.
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It’s BS. There is a small profit earned on every card. It’s the same loss Sony suffers when you use a credit card to buy PSN dollars (there is a small charge from the credit card companies to Sony for every purchase).
Sony takes the same loss at retail except it is the retailer collecting it, not a credit card company….unless you buy the Sony card with a credit card then the retailer breaks about even.
Please don’t just post Kotakrap trash here without some research. Just call up a few managers of major retailers and you’ll get the truth from the horses mouth.
Anyone tried PSN cards from 4SaleUSA.com ?
http://www.4saleusa.com/