How much do video games cost and what is the profit on them ?

Found 14th Sep 2009
I've noticed many HUKD deals are video games, and yet they seem to be 25% cheaper sometimes at launch compared to retail shops, and then the price seems to decline faster and faster.

This only happens in the UK, as the prices in the USA and Europe seem to hold for over a year.

So if a game is retailing at £40, how much do they initially buy the game for ? Anybody know ? Also are retailers losing money by selling games at £10 and £15 a few months after release, or the game publishers simply slashing their prices ?
Community Updates
probably ripping us off before they drop the price
Retail stores have always been like this. My guess at why they price their stuff so high is because they own shops. Online stores don't have hundreds of shops to worry about.

CoD4 is the only game I've seen hold it's price, god knows why.On PC that … CoD4 is the only game I've seen hold it's price, god knows why.On PC that is.

PC games are quite cheap to start with although it has held its price pretty well on console. Not surprising really.
You'd be surprised. I used to work for a major high street retailer and the profit margins aren't that good. It generally depends on the format and the supplier of the game but it was common for new release XBOX 360 game to cost a store around £28 per copy. Thats why shops like GAME and now HMV love selling pre-owned; the profit margins are much higher.
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