Subject:
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Re: Sweetening LEGO Creator
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Newsgroups:
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lugnet.games.lego.creator
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Date:
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Sun, 20 Aug 2000 18:08:51 GMT
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Viewed:
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7983 times
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The CDROM market has hit bottom. Free in Cheerios.
Not long ago, Mattel was offering a $19.99 rebate on selected CDROM titles for
kids. These discs were sold through CompUSA, Toys R Us, OfficeMax, you name it.
Mattel's typical wholesale take of 50% nets them $10, yet they pay the whole
refund. The strategy? Not everybody sends in the refund form! Studies told them
that the average rate would be 30%. One thousand copies nets $10,000, subtract
300 rebates or $6,000, and Mattel has $4 per CD shipped. (If it's not a Mattel
inhouse job, the creator was getting a few bucks, so, possibly 0 for Mattel.)
Hasbro has a similar story. Hundreds of millions down the drain. In Mattel's
case it brought down CEO Jill Barad, "saviour of Barbie". Hasbro just lost a ton
of money (neutralizing any gains from Star Wars.)
These, along with Packard Bell, are what destroyed the "edutainment" category--
race to the bottom, slashing prices, cutting costs to edge out quality.
Cereal boxes sound like a last-ditch attempt to get rid of unsold discs at
pennies on the dollar.
If Lego had sold 100,000 copies of their CDs, they might have recouped their
production costs.
The numbers are only getting worse -- soon there won't be a thriving PC
entertainment software category, because you can't make much of a profit on
1,000,000 copies, and less than a hundred titles can sell that well.
-Erik
> Todd Lehman wrote in message ...
> > You're walking down the cereal aisle at the supermarket and suddenly, out • the
> > corner of your eye, you see boxes of cereal with little images of LEGO • pieces!
> > You look closer and -- it's LEGO Creator! On a CD-ROM! Bundled with Cocoa
> > Puffs and Lucky Charms cereals for four bucks.
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Message is in Reply To:
 | | Re: Sweetening LEGO Creator
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| Todd Lehman wrote in message ... (...) the (...) pieces! (...) I went to my local grocery store yesterday, (Albertson's) and I found the following; Cheerios ($3 for the large box) which contained either Clue, Amazon Trails, Word Detective and Lego (...) (24 years ago, 20-Aug-00, to lugnet.games.lego.creator)
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