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Technology Stocks : THQ,Inc. (THQI)

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To: Todd D. Wiener who wrote (7453)8/5/1998 11:42:00 PM
From: gofrank150  Read Replies (1) of 14266
 
<< I estimate that the gross margins of these units will be about 42%, compared with 48-50% for other N64 titles.>>

Todd, gauging from your numbers, it appears you are estimating a cost of about 19 bucks a piece (.58 * 33.00 - the w/s price announced in the cc). that is roughly the cost i have been using in the past, and appears to be similar to what you were using for the full price version (assuming around 40.00 w/s price).

my question is do you think nintendo is cutting thq a price break on the cart production to be part of the program and promote the N64 console?

I assumed they would. My assumption is based off seing games like tomb raider (psx) selling for 20.00. If sony is charging 10.00 to make it like a full value game, doesn't seem like much $$$ left to go around for retailer / game maker.

Chris

Chris
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