DVD Empire exits, slams game biz


	DVD Empire exits, slams game biz

Squints

2-1-2007 1:21 PM

319 views

tags:

video games

Squints says:

Meanwhile, EB Games took in $1.7 billion in sales in the last nine weeks of 2006.

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Online retailer <A target="_blank" href="http://www.dvdempire.com">DVDEmpire.com</A> is no longer selling games, the company revealed. The site, which specializes in selling DVDs over the Internet, is now clearing out its inventory of games by selling titles for 20 percent off. 
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However, it isn't so much the fact that the company is getting out of the business as much as <I>why</I> it is getting out. On its Web site, the retailer lists the reasons it is exiting the game-selling business, and it doesn't paint a pretty picture for smaller retailers.
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"Here is an example of the video gaming industry greed: they set the retail price at just $5 above the product cost (buy it for $54.99, sell it for $59.99). When we sell a game we make on average 8.3% gross margin. That does not take into account any of the cost to store the video game or labor to receive/ship an item," the site says. 
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