How low can it go?

An interesting discussion on the good Amico reddit group (the one that is not run by self-interested footbath salespeople):

“Let’s say this thing physically arrives in stores for purchase. Anyone have thoughts on how low the price could go on clearance?”

I think it’s unlikely Intellivision will manufacture enough to need to liquidate these at less than half the wholesale price. That means it’s unlikely you’ll be able to find one for $39 like you could with the Atari Jaguar in the 1990s. That doesn’t mean an android console with 2 controllers containing non-replaceable rechargeable batteries and an online store is going to shoot up in value because of simple scarcity, because it looks to be useless trash.

With one side of his mouth, CEO Tommy Tallarico says they don’t want to manufacture more than they can sell. With the other side, he says that they already have purchase orders in the hundreds of thousands. It’s clear he says whatever is most useful to him in the moment.

A simple search of his comments shows this tendency to equivocate. He throws up a lot of chaff and frequently changes his story, but I think this is the comment that people remember best.

“You are 100% correct… big box retailers only make around $5 – $10 for a $400 PS4, XBOX One or Switch.  $5 – $10!!!!  The markup is in the software (100% mark up in fact).  And now a lot of the manufacturers are going digital.  The only reason the stores carry the machines is so they can make the money on accessories and software.  So what happens when the software portion is gone??  I can tell you from personal meetings and experience… the retailers are NOT happy.”

“Intellivision on the other hand is the opposite!  We are EMBRACING retail where the others are moving away from it.  We are doing huge exclusive deals with the biggest retailers IN THE WORLD.  And our margins are a LOT better so it’s a win/win for everyone.  The retailers LOVE US.”

“Again… we are doing things completely different than the others… so folks who know nothing about what we’re doing can keep complaining about a system they’ve never seen… but here at Intellivision HQ… we are very confident that a lot of folks are going to be surprised at how serious and big this will be.  <shit-eating grin>”

He’s also suggested that Sony and Microsoft “can’t” get into stores like Bed, Bath, & Beyond for this reason. Once again, he thinks he’s discovered something that everyone else missed, as if the big guys somehow missed a fat target with money to spend on Corn Hole.

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