To get video game consoles on shelves, the manufacturers ask the stores to sell the physical hardware at much lower margins than normal, in return promising sal

To get video game consoles on shelves, the manufacturers ask the stores to sell the physical hardware at much lower margins than normal, in return promising sales of peripherals with a huge markup. Having talked to a few people who were directly involved, for controllers the manufacturer get maybe 10% of the purchase price as profit, the store would take 40%+. The markup was basically 100% from what the distributor charged. This is also why for the longest time consoles shipped with bare bones everything. E.g. External wifi, sometimes extra video cables were even needed. Anything to help the store turn an actual profit on selling the physical consoles.