Why? They could spend time educating customers by saying they refuse to stock such an anti-consumer game system. They barely make any profits on the system and new game sales anyway, so what's their loss by refusing to stock it? Walmart makes their money on all the other non-gaming crap you buy while going in to buy the system.
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Gamestop found out about Microsoft's pre-owned games policy later than we did
- Thread starter Meus Renaissance
- Start date
Why? They could spend time educating customers by saying they refuse to stock such an anti-consumer game system. They barely make any profits on the system and new game sales anyway, so what's their loss by refusing to stock it? Walmart makes their money on all the other non-gaming crap you buy while going in to buy the system.
Wishmaster92
Member
Yes, I am aware of the full price charge per account, even if a buddy borrows the game. I was just going off of Major Nelson's comment stating that gamers will be able to trade in and resell at retail. Very vague wording from these guys today. But it's absolutely horrible any way you slice or dice it.
LiquidMetal14
hide your water-based mammals
The press we trust, sure. I don't care what Cspan or USATODAY thinks.
Oh man, imagine all of this turning out to be wrong. They should do something like... hm I don't know, a conference to tell us about the details.
no you just think that retail outlets operate like online stores. it has a completely different type of customer. why on earth would anyone buy a big budget item at all in a local store when it is cheaper online in your world? to get it a day earlier?
Tylahedras
Banned
If I remember correctly used games are like 65-70% of their business and new games are like 10% and hardware is like 20% (Someone help me out here).
Anyway used games make them so much more money then anything else that to allow a company to shiv them like this will literally mean their end. This is slitting the throat of their business model. I expect them to fight back, and given that they were not told in advance about this I imagine they will not fight back nicely.
The shareholders have far to much to lose from this. They will exercise every bit of muscle they have to ensure that xbox one is a failure.
milkham
Member
this is gaf i thought we don't trust any press
Neuromancer
Member
Holy shit I thought they were in the loop. This is going to be crazy.
Alligatorjandro
Banned
I cant see a console doing well if GameStop doesnt carry it.
LiquidMetal14
hide your water-based mammals
Can't wait.!
Need more details.
True but there are specific folks we like
I think Gamestop is a full 50% of the retail video game market. Gamestop wouldn't flinch.
Granted, I highly doubt that they'll be taking the total shutout approach.
In terms of margin you're about right - maybe a bit less on hardware depending on where we are in the generation. Also accessories isn't to be sniffed at.
Duxxy3
Member
In the long term what is the better opportunity for gamestop?
Supporting all 3 consoles, but risk supporting one that goes against their philosophy.
Or supporting 2 consoles and trying to prop up one of them to lead the industry. The downside is that they wouldn't get a cut from accessories or other profitable xbox one items.
It's a risk either way.
Supporting all 3 consoles, but risk supporting one that goes against their philosophy.
Or supporting 2 consoles and trying to prop up one of them to lead the industry. The downside is that they wouldn't get a cut from accessories or other profitable xbox one items.
It's a risk either way.
nhlducks35
Member
arglebargle
Member
if they did, they were lying. according to their most recent annual report about 44% of profits come from used software. this compares to 4% for new hardware, 30% from new software, and 22% from "other".
if there is a chance you are misremembering and they said the majority of their sales or revenue are from new products, then that is true.
granted these numbers come from the tail end of a console generation which may change things, but they dont really change much since last year (ended january 2012) anyway. if i werent lazy i could go further back in time.
Do part one - then if shit goes sour, part 2.
So much conflicting news today. Another thread says MS will be buying back used games instead of retailers. WtF??
And if they do screw over Gamestop, a GS retaliation could hurt them.
I don't know anyone who buys games from online retailers aside from enthusiasts looking for sales and tax free goods.
The average or casual gamers go to Target, Walmart, Best Buy (LOL), K-Mart, Sears (LOLOL), FYE. But out of these retailers (at least in MD/DC) GS is the most widespread. If you go there any given weekend and you'll find parents with children picking out games, average joes stopping by after work or class, and confused grand mothers buying goods for their grand kids. Come holiday season, GS is usually packed.
Fried Food
Banned
The thing is Microsoft supports trade ins and resells, but now they want to get money out of it. This hurts GameStop indirectly since people won't WANT to buy used
Probably giving Microsoft the Bishoptl face as well.
I'm wondering if this is just a move from MS to try and eliminate the used market altogether.
dragonflys545
Member
Seriously. This is going bananas.
Meus Renaissance
Member
Do you have a quote for this? The only thing I can refers to "trade your previously-played games online", which would indicate cuts out retail
In regards to your rebuttal over the issue of an activation fee: I understand your reasoning that Harrison was referring to merely purchasing a second copy of the game, although the language used was still vague. However this seems to confirm our suspicion:
Making measly profits vs. making zero profits.
This really is the perfect time for the press to push Sony on the issue and get some clear answers. I suspect we are going to be waiting for E3 for such talk though, Sony can take allot of consumer goodwill here and use it to their advantage because even if Sony leaves it up to the publisher(their offical stance right now) it would still leave a more open second hand situation in place for the PS4 and they can just lay blame for the rest on EA,Activision, Etc.
The next two weeks is going to be a long wait.
The next two weeks is going to be a long wait.
Tylahedras
Banned
I'm not disagreeing, but every single machine they put in the marketplace will be one more machine they cannot collect used games dollars on. For someone like Best Buy or Wall-Mart, where the % of sales skews more towards hardware I expect them to carry it.
It's risky for them to fight it, and they will lose money for sure not selling it or it's accessories, but if they do sell it they will be digging their own grave.
I think they are smart enough to fight for their survival.
Haha, seriously.
Tylahedras
Banned
That's not the case, if they fight back they might kill the xbox one and survive another 10 years. If they don't fight back they will be just another retailer that sells games, and big box retailers will muscle them out. Without their used games business they cannot survive.
That does make sense.
Fried Food
Banned
Your right this is a perfect time for the press to dig for "positive" information that would also be helpful to the consumer and potentially Sony themselves.
You'd think Sony would be glad to say they are taking the consumer friendly route
Grover Cleveland
Member
Whatever ends up being the final word, Microsoft has done a horrific job of getting a single unified message out on the new console. This day has been a PR disaster for them.
True - but what you might see (what I expect to see if all of this is true) is staff members pushing alternate devices to people.
I know GAF sniffs at retail - but it sells a LOT of machines to people. A lot of these people come in and WILL ask "which console should I buy?"
It will be an easy question to answer for Game/Gamestop etc employees.
That can't happen, they're only delaying the death of their most prominent revenue stream.
If it's not this gen it'll be next, any respect market research firm should have told them this is the direction the industry is heading in.
I think they're just playing it safe
If they were really pro-consumer they would make it a System mandate that no publisher is allowed to block used game sales.
mightynine
Member
Which is good news for bringing over your game to a buddy's house, but still screws over GameStop.
It's obvious MS wants you to do any used game selling through them, not GameStop.
This. It will be a big blow to Microsoft. Other retailers may follow suit into either not selling the console or to only put out a limited stock of Xbox One's (just like with PSP Go).
Wow I'm really surprised they didn't know. Crazy.
12.8% for GameStop vs 38.8% for Walmart. GameStop absolutely has the clout to seriously hamper sales, in the US at least.
Kill it? No. Cause problems? Yes.
GS' bottom line will be hit hard by the lack of used games, way harder than selling new games will make up for. It's in their best interest for MS to drop the feature.
http://www.newser.com/story/167278/mcdonalds-is-most-visited-business-in-america.html
12.8% for GameStop vs 38.8% for Walmart. GameStop absolutely has the clout to seriously hamper sales, in the US at least.
Kill it? No. Cause problems? Yes.
GS' bottom line will be hit hard by the lack of used games, way harder than selling new games will make up for. It's in their best interest for MS to drop the feature.
Chuck Norris
Banned
So basically MS and Gamestop are going to go head to head and ruin eachother in the process.
purnoman3000
Member
I think you mean if only we had an Xbox One with required always on kinect in his office.... then we'd really know
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