cvxfreak said:
Fairly sure the retailer's computers produce specific number of units for each game sold, and then they fax it over to the NPD or something. They add that with other retailers, do whatever calculations they need to do, and voila, we get a number. I'm sure it's much more complicated than that, but that should be it in a simplistic way.
FAX?? In today's world? Retailers are ass backwards when it comes to technology, but it's not that bad.
Retailers provide an export file to NPD that has varying bits of information, much of which is not actually provided via NPD, but gives them some nice data (Days out of stock, weeks of supply, etc).
Retailers provide NPD with the games, hardware, and accessories at a UPC level, a designation which is unique for each item and determined by the publishers (or manufacturer). There are some game bundles and generic skus which get used at some locations for budget stuff, but it's small potatoes.
C- Warrior said:
Another question.
To a publisher, where do they make a profit? Do they make thier money when a game is shipped to retail, or when it is sold to the consumer. If it's one or the other, is that how it works for all retail stores, universally in North America?
Well, that's a loaded question. Publishers don't always ship directly to stores, but to distributors, especially for smaller chains and mom and pop stores.
The publisher sells games to retailers and distributors and that's when they "book the sale". They might not get paid for quite awhile, depending on the terms they have with the purchaser. That's when corporations accounting departments get involved to take care of the accounts receivable and accounts payable.
But, in the most basic form, publishers get "paid" upon the shipment to a retailer. Of course, they have to hold some of that money in a seperate account, or reserves, to cover returns from a purchaser and price protection in the case the price drops while a retailer still has supply.
It's NEVER when the product is sold to a customer except in consignment situations, which are extremely rare in this business.