Rhino - You have to factor in what they get for those games on the back end when they sell them off. If I recall right, somewhere in the neighborhood of 60% or better. Now they have to only make up less 1/2 the cost of the game before turning a profit. How many rentals is that?
Not mentioned was that NetFlix and BBI have worked out deals with the studios where they get their inventory at little or no initial outlay. They then pay the studio so much for each time the flick is rented. With the volume they have they can work out such arrangements. We can't yet.
Now, about games, IMO that is one reason why NetFlix and BBI are basically staying out. I wonder if game manufacturers will work out the same kind of arrangements considering costs involved? So NF and BB don't want to spend the millions necessary to stock games.
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