Sony Playstation 3: Wholesale Myth?

It is interesting to see continued advertising of wholesale playstation 3 all across the Internet when the playstation in mid November of 2006. With the holidays being full step ahead on Internet sales- we must ask ourselves if there is really wholesale for the newly released PS3. The Internet is full of great people but as always- it has many downfalls when it comes to accurate information concerning wholesale.

You definitely need to understand that most of the time when there are giant companies like Sony, Microsoft, Nintendo and those competing for the video games console leadership, wholesale in release dates is most likely out of the question. Why? Ask yourself from whom major market profits are gained. Do profits with gaming consoles come from the sell of retail or do company profits come from wholesaling newly released items? If the immediate obvious answer is from the sell of retail, why would a company like Sony give approval for immediate wholesale on playstation 3 and its accessories?

Fortune 500 companies in the video games business make their primary money from retail, not from wholesale in release dates and on first fiscal years. Especially when various publications from authoritative sources like the Yankee Group estimates that Sony will probably lose $1.7 billion selling PS3s in its upcoming 2007 fiscal year. Can you imagine if the sell of wholesale playstation 3 will really hit the definition of wholesale anytime soon? Many of us do not think so.

Better yet, analyst for the Yankee Group also estimate that Sony spends from $700 to $800 to make PS3, thus creating a potential big time loss on every sale each time the consumer buys a PS3 on 2006 holidays and 2007 or, until PS3 developers consider some modifications if needed for its console developing process. Nonetheless, Sony gaming division will not return to a profitable standpoint until millions are sold and revenue from other hardware are then sold. So if this is to be considered as a fact, do you think wholesale is acceptable for big time companies like Sony, for today holidays season or for tomorrow 2007 year? I do not think so.

Next time you start think on hitting a search for a ps3 for this ending holiday season or for our next year, please think on how retail works in revenue and how wholesale really defines its word. The only way an eBay power seller see himself profiting from the sell of wholesale playstation 3 today, is just by buying them at regular retail prices and selling them to the mid-class and high class society at prices that are most likely not affordable to the regular consumer this days.

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Wholesale Playstation 3 - Crucial Facts

It is not possible to get brand new wholesale playstation 3 with the definition of true wholesale, from distributors online, period. Despite what many crooks would have you believe- if you try to get a PlayStation 3 in this way, the best scenario is that you will get it slightly cheaper than the retail price, but with a lot more hassle and worry.

The worst case is that you will not get your playstation 3, and some unscrupulous crook will get your money. Why? The first answer is simple market economics. The reason wholesale prices are low is because of the cost of dealing with individual customers.

Any company, which is selling to individuals- will have to encounter these higher costs- and so will not be able to offer wholesale prices.

The second reason is the shortage of units of wholesale playstation 3. Sony manufacturing centers in Japan and China have been unable to produce enough units to flood the market at its previous launch. Anybody who does have access to a PS3 today has a strong incentive to sell on to a retailer, who will be able to get a good price for them if viewed in the business perspective.

Finally, Sony exerts control over the pricing of the playstation 3 in the US market, as things are slightly different in Japan, where retailers are allowed to set their own prices. They have the legal and economic power to ensure that the ps3 is sold only for the official prices- that is, $499 for the standard version, and $599 for the premium version. Hopefully this gets through many entrepreneurial minds.

So, what are all these outlets offering the PS3 at wholesale prices for? Mostly, it is just a marketing gimmick as entrepreneurship standpoint. Some of them may really be wholesalers who are trying to break their agreement with Sony and sell the PS3 direct to customers.

If that is the case, they are likely to be in legal trouble fairly soon, and they are not good people to be trusted with your hard earned money, in the most likely event.

Where do you go if you cannot get the Sony PS3 at wholesale prices? Look for the best of the retailers. Their prices might seem a lot higher than those of the wholesalers, but in fact some will probably be offering bundles that give you good value for money.

You will probably be in the desire of getting extra games and controllers anyway, so why not let shops include them in the package for you? That is the way to get if you want to see it that way for this 2007 year as a wholesale playstation 3 instead of the many current distribution scams online.

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