We have already seen in the last year several sites and articles discussing how much are Console manufactures making out of their latest consoles, and the result are manufacturing costs near to break even or even turn on a profit next to the Retail Price of the consoles.
Yet most sites seem to fail in the same mistake, the retail price is not how much money Sony, Microsoft or Nintendo get out of Each console sold, as this price includes a cut for the retailers, name it Amazon, Gamestop, Bestbuy, etc, in charge or sell the console to the population.
So to calculate actually how much are companies is Profiting (P), or not, out of each console, we need to calculate how much is really Earning (E) for each console sold at retail, so we will find out the Retailers Cut (RC) and subtract it from the Retail Price (RP), and then obtain the different between Earning and Manufacturing Cost
