Yes and no, its a combination. Say in the past Sideshow was selling it for $180 on their site and $125 to retailers, you know their cost was probably $90. So Hot Toys saw figures selling for double what they got and sometimes triple on ebay. So they kept jacking up prices. What happens is that Hot Toys raises the price from $90 to $100 to Sideshow, well Sideshow doesn't want to lose margin so they go from $180 to $200, happens with all types of business, no one reduces margin because their costs went up unless competition requires it but there is no competition. Its like Gas, oil goes up 10% in price, so does gasoline (or more), gas stations still make their same margin as always. So now if Hot toys wants $115-$120 for their figure from Sideshow, we will start seeing $235 to $240 retails, so the more "greedy" Hot Toys gets the more money Sideshow makes, until they hit the point where WE stop buying, then someone needs to budge, either Hot Toys needs to lower cost to Sideshow or Sideshow needs to realize they can't make 100% markup on TOYS this expensive anymore and should be more than happy making 80% on them which is still more profit than when they were selling them for $160.
The fact that retailers who buy from Hot Toys will so easily discount 10% on pre-orders shows you they have a ton of profit in them.