How do companies and retail stores make money? Read details?

Ok. Lets say Gamestop. They sell an XBOX 360 for 300 bucks, with tax at least in canada lets say it comes up to 350. Now who getst he 300 dollars? Microsoft (supplier) or Gamestop? How does this work? Do they split it?

A Microsoft (a wholesaler) sells to Gamestop (a retailer) at a reduced price because they are buying in quantity. So, for example, Gamestop goes to Microsoft and says we want 10,000 XBOX and are willing to pay $150 for them and Microsoft agrees. So for your 350, 150 to Microsoft, `50 to Gamestop and 50 to the government.