Does Gamestop have a future?

[Jake Plane]

For years, I believed that Gamestop was a smart investment opportunity.

Gamers were turning gaming into a billion dollar industry, seemingly without notice. And whether you were a PC or a console gamer, your one mecca was Gamestop.

But now?

I have doubts about Gamestop's viability moving forward.

Nowadays, you can buy games at Best Buy, Target, Wal-Mart, Blockbuster, etc.

And while Gamestop offers some consumer incentives (their trade in program for instance), on the whole, the competition is poping up left and right. In the same way dedicated music store chains (Music Plus, anyone?) went the way of the dodo, I wonder whether the writing is on the wall for Gamestop? And if so, whether there's anything they can do about?

[Bahimiron]

I hate Gamestop for firing Jeff Gerstman!

...

What?

[MattKeil]

I wonder whether the writing is on the wall for Gamestop? And if so, whether there's anything they can do about?

I hope not. The faster they crash and burn, the better.

[Chowhound]

Uh...?
This year was like a record year in profits for them, and I believe they made the Dow 500?

As long as people want a pawn shop for their games, Gamestop will be around.

[Jake Plane]

Right. But my underlying question is to ask whether this is a sustainable model moving forward. I have my doubts.

[roguefrog]

The funny thing is, I never went to Gamestop until they bought out EB.

I always went to EB and Software Etc which had walls and walls of PC Games.

[Reldan]

Pawn shops have been and always will exist...

I see Gamestop as being with us for years to come.

[Lorini]

Huh? They are now on the S&P 500 http://www.gamespot.com/news/6183717.html?tag=result;title;4

They also had a record 1.6 billion quarter last quarter
http://www.gamespot.com/news/6183208.html?tag=result;title;5

So I think they are doing damn well. Even with the competition. Remember that BB for example doesn't have people who know the games/systems, and even though many of us have had interesting experiences at Gamestops, they are supposed to know the games.

[Sarkus]

Right. But my underlying question is to ask whether this is a sustainable model moving forward. I have my doubts.

That's been true for years, though. I think a lot depends on either a) a major competitor for the used business emerging or b) the shift to games being delivered primarily via internet. Both of those seem years away.

[Jake Plane]

Prostitution has been around since time immemorial. That doesn't mean that it's a smart investment.

I can certainly see Gamestop contracting and continuing a weakened existence, but I can't imagine it growing at the pace it has or having the type of success it has had to date beyond the near future.

[MyNameIsWill]

Why? Do you think people will stop buying games?

GameStop will be around for a while, I think, because they offer the same prices for games the the Big Box stores do. They offer trade-in services and pre-order services, too. They're smaller, so if you know you want to buy a game, you can get in and out very quickly. They tend to be in malls, which attract a good number of young people.

I think I can see your concern, since after all, the Big Box stores drove a lot of the music stores out of business but that' mostly because the recording industry is tanking and the Big Box stores used CDs as a loss leader. As I mentioned above, that $59 game will be the same at GameStop or Best Buy (maybe Wal-Mart will have it for $57.82).


The funny thing is, I never went to Gamestop until they bought out EB.

I always went to EB and Software Etc which had walls and walls of PC Games.
Ditto. I still go to the stores branded EB Games if I have the opportunity to.

[Lorini]

I still don't see why you think this way, unless you are just trolling. Their profit margins are huge on the trade-in stuff and their costs are minimal with their small stores. They are going to grow just as the industry does, actually better than the industry because of the trade in stuff. BB, Kmart, Walmart are not set up to take trade ins so they don't have to face competition on that front. No one is selling used games on ebay anymore than they used to, so their gross is legitimate. Also, they deliver PC games over the internet, just like Steam and Direct2drive etc.

As long as the industry is growing, they should be just fine. OTOH, if it stops growing then they have a problem vs BB etc, since they only sell videogames while the others are more diversified.

[SqueakyFoo]

They're smaller, so if you know you want to buy a game, you can get in and out very quickly.
Bullshit. It takes me far longer to buy a game from EB (they haven't rebranded them Gamestop in Canada, yet) than from Future Shop. At Future Shop: head to the console games section, pick out game I want (which is quite easy as they leave a couple of inches on either side of a game so they don't look all crowded together), or if they don't have it on the shelf, ask one of the three employees working that section and they'll almost always know for sure if they have it in stock (often without even checking their computer), and head to the checkout. The checkout process doesn't take very long as they always have plenty of cashiers, none of whom try to upsell you a strategy guide or scratch protection or shit like that.

At EB, I have to squeeze my way through narrow floorspace that's overloaded with used games and used controllers, then try to find the game I'm looking for amongst all the games crammed into a 4 foot shelf all with the spine facing outwards making things very challenging indeed. Then I have to wait about an average of 5 minutes in line as it takes them forever to process a transaction there, thanks to their policy of requiring employees to upsell strategy guides, sell their scratch protection thingie, and the fact that they gut game boxes and keeping the discs in a locked cabinet. And you have to watch them like a hawk in case the dumbass puts the wrong game in the box. It's just not worth it to have to deal with EB. The only thing they have going for them is they get in games that Future Shop or Best Buy don't (like the MegaTen games). But Amazon.ca has been carrying videogames for a while now, and semi-obscure jrpgs aren't really an impulse buy for me like some other games, so I don't mind waiting a week or two for them to arrive.


tl;dr: Future Shop is a far better experience to buy games than EB (for me).


edit: EB, not BB

[Grifman]

Right. But my underlying question is to ask whether this is a sustainable model moving forward. I have my doubts.

Uh, what's changed? Target, Walmart, etc have been selling games for years now. You act like this is something new.

[Kael]

I don't think Walmart and Best Buy don't compete directly with GameStop. GameStop makes all of its money on resells, there just isn't much profit margin on new sales (at least not as much margin as GameStop wants) compared to a resell.

The shame is that the developer doesn't get any part of the resell, and yet that resell is competing with new sales that the developer would get profit from. Try buying a new game at a Gamestop on anything but release week, they always push the "we have a used version of that for $5 less". Why do they push it? Because they are making a lot more profit on that used copy then they would if you bought a new copy.

Unfortunatly that means that outside of release week publishers are unlikely to see anything more than a trickle in software sales through this method even if their game is a hit.

Sure this is the same model followed in other industries, no one complains when a dealer resells a traded in car even though the manufacturer doesnt get any of that sale. But the difference with software is that there is little to no depreciation and the turnaround is so quick (the time it takes a player to get tired of the game).

Other gaming stores dabbled in resales but Gamestop made it the core of their business (one of the reasons they dont care about PC games) and they are making a ton of money off of it.

I had this conversation with a guy at Gamestop yesterday. They were selling a copy of Motorcross from a PS3 bundle. The one marked "Not for Resale" across the top. I mentioned that that may make them unable to resale that copy of Motorcross, and he argued that it only means that they cant break it from the bundle and sell it new. If they sell it and buy it back then they can sell it for whatever they want. Now this is just some kid shooting the breeze with me in a Gamestop, not any real legal arguement so Im sure we were both full of crap, but it does show that Gamestop is pressing resales and not letting anything stand in their way.

I don't know what the answer is. I am looking forward to direct distribution of all gaming content. Let the developer control his assets from start to finish. I used ot be scared of losing the local gaming retailer, now I cant wait for that day to come.

[Dave Long]

Jake, every time I take you off my ignore list, you go and do something like this and I have to put you right back on.

[VegasRobb]

Gamestop has a future. The console shortages have only enhanced their profile because many people who used to restrict their shopping to the big box stores have had to make their way to Gamestop in hopes of finding a console and/or accessories.

[Unicorn McGriddle]

Jake, every time I take you off my ignore list, you go and do something like this and I have to put you right back on.

Aw, come on. This isn't even a poll.

[zabuni]

The shame is that the developer doesn't get any part of the resell, and yet that resell is competing with new sales that the developer would get profit from. Try buying a new game at a Gamestop on anything but release week, they always push the "we have a used version of that for $5 less". Why do they push it? Because they are making a lot more profit on that used copy then they would if you bought a new copy.

The other side of the fence is that the margins on new games are so slight that a store is hard pressed to survive by the virtue of new games sales. That not selling used games doomed other retailers, as the overhead of a retail store did not match the markup of a game.

[bloo]

They'd have a better future if they invested more in staff training (and presumably compensation).

Made the mistake of going into one today. Now I'm prepared for multiple root canals.

"I'm just curious, why isn't this copy of a PC game, which you went in the back to get after I gave you this floor copy, not shrink-wrapped? It's new, isn't it?" "I don't know, maybe it was on the floor as a display and we pulled it off?" "Yeah, you better let me have that receipt."

Not even a "thank you."

Also, six idiots crowded behind a counter, 4 kibbitzing, one checking people out, the other, a manager, paralyzed in confusion at whatever alchemy was printed on his screen, does not a good store make. But I guess they don't care. All they want is your trade-ins, you to buy used games, and for those looking for a Wii to stop calling. Actually heard one staff brat snidely comment just out of range of a customer that 'if you really wanted a Wii you would have got one a year ago' - 'cause we all cool bleeding edge early console adopters.

There is nothing nice about these stores. Target is more inviting.

[Moggraider]

As much as I want Gamestop to fail now that it's marginalized PC games and turned into a pawn shop, I don't see any evidence that it will fail. Jake Plane's thread doesn't help convince me, either.

[CheesyPoof]

Nowadays, you can buy games at Best Buy, Target, Wal-Mart, Blockbuster, etc.
Do any of these stores let you trade in games? People have called GameStop a pawn shop for good reason, they would rather buy your old game and sell it used for far more profit than they could selling it new.

[SqueakyFoo]

Try buying a new game at a Gamestop on anything but release week, they always push the "we have a used version of that for $5 less".
Oh yeah, that's another reason why I quit going to EB. Trying to get a game on release is impossible unless you pre-order. Which I find really odd because in every EB I've been to there's been a Wal Mart, Future Shop, or Best Buy within walking distance.

I guess this just highlights the fact that they're a glorified pawn shop. They don't really want you to buy a new game, they want you to buy it from BB and then trade it in for another used game at EB/GS.

[Dave Long]

Oh yeah, that's another reason why I quit going to EB. Trying to get a game on release is impossible unless you pre-order. Which I find really odd because in every EB I've been to there's been a Wal Mart, Future Shop, or Best Buy within walking distance.

I guess this just highlights the fact that they're a glorified pawn shop. They don't really want you to buy a new game, they want you to buy it from BB and then trade it in for another used game at EB/GS.
Actually, it's better for them if you do all your transactions there. What they do is get you to pre-order something and then use your "old" games as a downpayment on the new one via trade-ins.

Then other people (like me) come in and buy the used ones where they make their profits.

...although they don't like me all that much either since I only buy the used ones when they're $20 or less for the most part. I'm not their highest profit customer, though they make out ok on me too.

One thing is certain, without the used game business, there would be about half as many Gamestop stores as there are now, and Gamestop doesn't deserve the real credit, Electronics Boutique pioneered pre-owned on a national basis. I was working in one of the ten original stores that ran the program when it was brand new. They got some of their ideas from a guy here in Reading that did a killer business in used games waaaay back in '93.

Hopefully that helps save this black hole of a thread from collapsing in on itself.

[BaconTastesGood]

So explain why some GameStop-like entity in the CD world hasn't taken off? Is it just because music is essentially free on the internet? How is this different from games (although you could argue that games, unlike CDs, are locked to a single manufacturer's console)? Or is it because margins were lower? What's the basic difference between buying/selling used CDs vs. games? There's more churn of the latter (you finish games), but easier churn of the former (buy/rip/sell).

Jake's got a pretty decent point -- we don't see too many dedicated retail music stores any more, it's been integrated into the big chains, and the siren song of 'more indie and import stuff too!' that CD stores used to justify their existence won't apply in the world of downloadable indie games and massive publisher consolidation.

[Hanacker]

Bullshit. It takes me far longer to buy a game from EB (they haven't rebranded them Gamestop in Canada, yet) than from Future Shop.

I'm in and out at Gamestop. But the one I usually go to also has knowledgable and friendly staff so maybe it's an anomaly.

[Mark Asher]

"I don't know what the answer is. I am looking forward to direct distribution of all gaming content. Let the developer control his assets from start to finish. I used ot be scared of losing the local gaming retailer, now I cant wait for that day to come."

Unfortunately, direct distribution seems to be simply another publishing avenue controlled not by the developer but by a distributor. You still have someone else taking a cut of the sale instead of 100% of the revenue going to the developer.

[Mark Asher]

"So explain why some GameStop-like entity in the CD world hasn't taken off? Is it just because music is essentially free on the internet? How is this different from games (although you could argue that games, unlike CDs, are locked to a single manufacturer's console)? Or is it because margins were lower? What's the basic difference between buying/selling used CDs vs. games? There's more churn of the latter (you finish games), but easier churn of the former (buy/rip/sell)."

I think it's because there never has been as much money in used music sales. The difference in price between a music CD and a game is significant. Also, games are more of a throwaway item than music, so reselling a game is an easier decision than reselling music. Most of us like to hang onto music we enjoy because we will listen to it again. Not so for many with games.

As a consumer, I'm glad we can resell our games. They are very expensive and the reuse value is minimal. Why would I want to hang onto a $50 purchase I will probably never use again when I can get $15 in credit for it?

[Dave Long]

There are used music stores around my area, and FYE does it on a national basis.

It's less appealing because it's a cents game instead of a dollars game, though. Gamestop buys back for $25 or less and resells for $55 or less. The customer saves as much as $5 on every game they buy used. Many used games also are simply not available new.

Plus new games are more easily purchased using trade-in credit from used ones. Publishers should take some time and look at the numbers. This industry grew by leaps and bounds when EB and later Gametop/Babbages/Software Etc. started their used programs. Publishers are selling more new games because of the used market, not less.

You take away used games and I guarantee you most publishers would feel it big time in their bottom lines. You'd essentially have the PC games market as it exists today.

[Anaxagoras]

Jake, every time I take you off my ignore list, you go and do something like this and I have to put you right back on.



Hopefully that helps save this black hole of a thread from collapsing in on itself.

Dude.... it's 2 days before Christmas. Whatsay you put a moratorium on being a douche for the next 48 hours or so?

[Raife]

Hey Mark, you know about [quote] tags, right? And the buttons that automatically set them up for you?

[Bahimiron]

Dude.... it's 2 days before Christmas. Whatsay you put a moratorium on being a douche for the next 48 hours or so?

I've only been posting here for a month and even I know better than this.

[tiohn]

Dude.... it's 2 days before Christmas. Whatsay you put a moratorium on being a douche for the next 48 hours or so?

Anyone in the service industry knows that that holidays only ramp up everyone's doucheness, usually to an extreme, while their generosity suffers by an equal margin.

And I'm amazed that people actually look for things on shelves at EB/Gamestop. In my experience, the best and quickest way to do the Gamestop is to simply get in the checkout line as soon as you walk in, and then tell them what you want. They always have to get it from the back or some drawer, and the odds of getting new sealed shit are greatly increased when you don't hand them a case in which to put open stock.

[Kareem]

Anyone in the service industry knows that that holidays only ramp up everyone's doucheness, usually to an extreme, while their generosity suffers by an equal margin.

And I'm amazed that people actually look for things on shelves at EB/Gamestop. In my experience, the best and quickest way to do the Gamestop is to simply get in the checkout line as soon as you walk in, and then tell them what you want. They always have to get it from the back or some drawer, and the odds of getting new sealed shit are greatly increased when you don't hand them a case in which to put open stock.

Sure, if you're going for something specific. You never wander into a game store and look around for nothing in particular until a game grabs your attention? I tend to do that a lot, obviously I've heard a lot of word of mouth before I buy a game but a lot of times I just go in and take a look at what a shop has.

[Coca Cola Zero]

Gamestop as we currently know it is d0med, but what d0mes it is digital distribution (not Best Buy) and their actual for reals d0medness is many years away from right now.

I think the OP is right to question Gamestop as a good investment opportunity though... they'd have been a great one a few years ago, but I'm not sure they have much higher to go from here.

[davidf]

Actually, it's better for them if you do all your transactions there. What they do is get you to pre-order something and then use your "old" games as a downpayment on the new one via trade-ins.

Then other people (like me) come in and buy the used ones where they make their profits.

...although they don't like me all that much either since I only buy the used ones when they're $20 or less for the most part. I'm not their highest profit customer, though they make out ok on me too.

One thing is certain, without the used game business, there would be about half as many Gamestop stores as there are now, and Gamestop doesn't deserve the real credit, Electronics Boutique pioneered pre-owned on a national basis. I was working in one of the ten original stores that ran the program when it was brand new. They got some of their ideas from a guy here in Reading that did a killer business in used games waaaay back in '93.

Hopefully that helps save this black hole of a thread from collapsing in on itself.


Actually, this thread was a pretty interesting topic. I was interested in what people thought, considering the blacklash gamestop is enduring right now, yet seem somehow they still seem profitable. I think its a decent question, why they endure when there are alternatives....

[MattKeil]

Actually, this thread was a pretty interesting topic. I was interested in what people thought, considering the blacklash gamestop is enduring right now, yet seem somehow they still seem profitable. I think its a decent question, why they endure when there are alternatives....

Primarily because, as Dave says, they're the only place doing the used game trade-in thing. A lot of people constantly rotate games in and out of their library, so for them Gamestop/EB is the only game in town. I try not to spend any money whatsoever at Gamestop/EB, but sometimes they're the only ones with something obscure.

[psu_13]

Locally I buy most of my games at Target/BestBuy or a local chain that sells used records/movies/games but without all of the annoying bullshit that Gamestop brings to the table. The local store also employs humans in their stores instead of those strange EB/Gamestop drones, and they tend to have better stock too.

[Midnight Son]

There's also Gamecrazy. (Part of Hollywood Video.)

[ZekeDMS]

As long as they're the only place I can get multi-console video cables for less than a single first-party calbe, I'm just going to have to hope there is indeed a future.

Given how big the business of used console games is, and that they have the lovely 7 day trial(which I'm known to use and abuse until I find something that I fall in love with), I don't see a problem for consoles. They're been out of the PC game for a long time now, most box retailers are thanks to digital distro, but even when there's something I can't download(and that is, thanks to Steam, really really rare anymore), I just hit Fry's Electronics for that, where they don't have to make money from reselling items.

[Dave Long]

They're been out of the PC game for a long time now, most box retailers are thanks to digital distro, but even when there's something I can't download(and that is, thanks to Steam, really really rare anymore), I just hit Fry's Electronics for that, where they don't have to make money from reselling items.
You haven't been shopping much lately if you think retailers are out of the PC game. Target, Wal-Mart, Best Buy, Circuit City... all of these major retailers have pretty hefty PC games sections.

Some Gamestop/EB Games stores also have rather large selections. The one in the mall near me has two full gondolas of PC games, easily rivalling the section at Best Buy or Target. They carry less PC games in the strip mall stores than they do in the enclosed mall stores.

Game Crazy has also started carrying a small selection of PC games.

We're a long way away from digital distribution overtaking retail for ANY form of games other than cell phones, which obviously have no retail sales equivalent unless you count N-Gage.

[Islanti]

Gamestop's profit is, as many have pointed out, almost entirely from used game sales. There are two major pressures on used game sales right now.
1. As was mentioned, digital distribution will cut into used game sales since you can't currently resell the license. Unfortunately there are people who will always want a physical medium for their games. The MS "Live Arcade" retail disc (just a pressing of a few existing arcade games onto a DVD) is evidence enough of this.
2. Downloadable content is already changing some habits. I know people who have sold games after the inital rush only to re-buy them when the game releases new content. This has changed some people's habits away from trade-ins.

Personally I've found it cheaper and more consistent to buy my games from Amazon using Amazon Prime. I can get games as inexpensively as at Gamestop (i.e. full retail generally) in about the same amount of time (if I pay the $4 for overnight shipping). I can manage which games I have pre-ordered much more easily this way.

[Marcus]

Wal Mart / Target / Bestbuy / CC

All of those stores have a larger PC game selection then Gamestop / EB. My EB has a fucking horrible PC selection.

[Lorini]

Wal Mart / Target / Bestbuy / CC

All of those stores have a larger PC game selection then Gamestop / EB. My EB has a fucking horrible PC selection.

Yeah, EB doesn't like PC games because they don't sell them used and therefore not much profit I guess. Also, I'm sure PC games generate a lot of return hassles ("this doesn't work on my machine!" "Look at our return policy!" etc etc) that you just don't have with console games.

[SwampIrish]

digital distribution will cut into used game sales since you can't currently resell the license

And even if digital licenses could be transferred, no one would use a third party to do it.

You know, I think that a GS/EB employee's greatest pleasure (especially during this time of year) is answering the question "Do you have any Wiis?". I think I will call them today- about 20 times- and ask them. Teach them to hold out on me on release days.

[Jab]

As much as I want Gamestop to fail now that it's marginalized PC games and turned into a pawn shop, I don't see any evidence that it will fail. Jake Plane's thread doesn't help convince me, either.


Agree, right now I only use Gamestop as a last resort or if the game is several years old and a new copy is out of the question. I've had part time jobs there for the holidays a few years ago and their really allowed to get away with some things. I know that employees are allow to take out games to play and return them, whether or not they're new or used and the game will be put back . The last manager who was somewhat decent made it point to only allow used copies but not anymore.One thing I've witness several times is that the employees give special treatment to friends and family members. Also I know that they sometimes take new games and label them as used for a sale, it's what they did with Persona 2 and from what I've heard also with Phoenix Wright 1.

[Drunkagain]

They're smaller, so if you know you want to buy a game, you can get in and out very quickly.

This along with the fact that I trade in a lot of games and buy a lot of used games keeps me a regular customer.

[Dirt]

I still don't see why you think this way, unless you are just trolling. Their profit margins are huge on the trade-in stuff and their costs are minimal with their small stores. They are going to grow just as the industry does, actually better than the industry because of the trade in stuff. BB, Kmart, Walmart are not set up to take trade ins so they don't have to face competition on that front. No one is selling used games on ebay anymore than they used to, so their gross is legitimate. Also, they deliver PC games over the internet, just like Steam and Direct2drive etc.
BB has used games. For $5+ more than Gamestop will sell them for though.

[MattKeil]

Best Buy has used games? I've been to at least 10 Best Buys over the last month and have seen nothing of this.

[Shadari]

Best Buy has used games? I've been to at least 10 Best Buys over the last month and have seen nothing of this.
That's because you don't have access to the back room.

[Dave Long]

Best Buy has used games? I've been to at least 10 Best Buys over the last month and have seen nothing of this.
They were testing it in some stores this year.

[Jonathan Crane]

BB has used games. For $5+ more than Gamestop will sell them for though.

Does that make them retail price, then?

[MattKeil]

Did it test well? Because I'd hate to see used shit clog BB shelves.

[divorced]

Prostitution has been around since time immemorial. That doesn't mean that it's a smart investment.


Dude, if you could find a way to invest in that, it would be like taking candy from a baby...

[SpoofyChop]

Jake, every time I take you off my ignore list, you go and do something like this and I have to put you right back on.

You take people off your ignore list? Not me. I had to infer what Jake's moronic post was about by reading the replies.

[Midnight Son]

Did it test well? Because I'd hate to see used shit clog BB shelves.

As opposed to overpriced new shit?

[Marcus]

As opposed to overpriced new shit?

I didn't know that Bestbuy priced games over what everyone else charged.

[rossm]

I had a surprising experience in gamestop today. I avoid going there, but I needed a copy of viva pinata (360) as a gift last minute. Walmart, bb, target, etc didn't have any, but somehow gamestop had a new sealed copy. So I guess you can occasionally find actual new copies of older games there.

[Moggraider]

I had a surprising experience in gamestop today. I avoid going there, but I needed a copy of viva pinata (360) as a gift last minute. Walmart, bb, target, etc didn't have any, but somehow gamestop had a new sealed copy. So I guess you can occasionally find actual new copies of older games there.

It's a bad sign that probably quite a few of us are genuinely surprised by this.

I went to a Gamestop yesterday. I've been going to this same store since I was in sixth grade, and just like every other store in the franchise, it's gone from being an EB paradise full of nothing but PC games to complete hell. I saw Rocket Slime for the DS on sale for $25, so I ask for it, but am told they're out of sealed copies, and do I want the open box store copy? I asked for Luminous Arc for the DS, but it was nowhere to be seen (it seems the district manager has seen fit to stock very few Atlus games, and every time I ask about one they say they only ever carry enough to fill preorders). I looked for some PC games, but most of the boxes were in bad shape and the inventory was quite stale. Sadness.

[Raife]

My EB has gone from having a wall of PC games and separate new release display to having one tiny PC section. I couldn't even find it the last time I went in there, a clerk had to show it to me. The nearby Gamestop has always been like that, so I can't say I'm really surprised. At least Best Buy has a sizable PC section, and you can even get some deals on new releases if you look for them. I'd also say their prices are generally lower than EB/Gamestop, contrary to what MS is spurting out of his spastic peabrain.

I'm at the point where I won't even go into EB/Gamestop unless it's for a console title.

[Derek Meister]

Did it test well? Because I'd hate to see used shit clog BB shelves.

The tests took place back in 2005 and I haven't seen it rolled out into any stores here since then.

From third-hand knowledge, it didn't do too badly, but the issues came from the extra costs and complexity involved in purchasing and handling used product outweighed the additional margin that comes with used game sales.

As for Gamestop going away, I have no doubt that that as long as there's something that can be sold, the used product market will stay strong. That said, a strong market still doesn't guarantee that Gamestop doesn't go under one day due to internal management issues like CompUSA did.

All it would take is a slightly better run national chain, with even slightly cleaner stores, less surly or immature staff, and even a minimal attempt at customer service to cause most people like us to switch over.

[Misguided]

Stock price over last 5 years (http://finance.yahoo.com/q/bc?s=GME&t=5y&l=on&z=m&q=l&c=)

Not sure what other evidence you want.

[Gaming-Module]

You guys who think digital distro is going to take off in the next 2-3 years are pretty silly. The recording industry isn't tanking because digital distro is proportionately replaceing hard copies sold at retail. It's tanking because there's a wealth of independent music out there that people are discovering outside of the Billboard top 50 or whatever. If anything, the crackdown on piracy has hurt the industry's sales, because people can't as easily try before they buy.

Games are a different story. They're expensive. They're large in terms of data storage requirements. People actually like to be able to loan them out, sell them, regift them, etc. Oh, and those of us who buy shit online are a HUGE minority compared to the number of people out there who refuse to put any personal information into a web browser.

On top of that, digitial distribution doesn't make any sense to most consumers. Sure, the Steam crowd loves not having to leave the basement, but outside of Gametap, DD is a raw deal for consumers. There is no price advantage realized in the overwhelming majority of potential DD transactions. Your user rights are severely abridged. Oftentimes, your ability to use the software hinges on the perpetual existence of the IP holder to manage a server or some such other verification vehicle.

And it's a hassle. I'm still trying to get MS to apply the serial number of my replacement 360 to my arcade games purchased on a RRoD 360 that I replaced via a store replacement plan, so other profiles can access them and I don't have to be logged into Live to use them. For the record, this is not why I dislike digital distro of games. This 360 predicament happened to me this past summer, but I've been saying these things for several years prior.

Quite frankly, even if I get my arcade licenses restored to full functionality, I can't say I will be making any impulse buys or really investing a whole lot of money into Live arcade and I sure as Hell will not be bothering with X-Box Originals after this fiasco.

That's the reality of the situation. I know a lot of you work in the industry and have been brought up to think that digital distro is going to set you free, but it just isn't happening until somebody figures out a way to make it make sense to the customer, at the very least. Maybe then can some of the other problems be tackled with effort, and time.

[RickH]

Stock price over last 5 years (http://finance.yahoo.com/q/bc?s=GME&t=5y&l=on&z=m&q=l&c=)

Not sure what other evidence you want.

Blockbuster's business model kicked ass for a while, so did its stock price. Then, everybody discovered Netflix and a lot their advantage went away.

Gamestop, like Blockbuster, built a lot of its business model on fucking the customer hard when they got the chance. Blockbuster with late fees (they made up a surprising portion of their profit margin) and forcing the customer to rent something else when they were out of the big new movies. Netflix took the pain away and added regional distro centers so that the turnaround by mail was quick. No late fees, you almost always got what you wanted for a price that you'd already agreed to pay. Blockbuster's advantage of being in every neighborhood, and its growth, was over.

Gamestop only carries new VG software as a carrot for trade-ins. Its margins for used software are huge and justify the neighborhood presence they have. If the margins go away, so does the reason for an expensive multi-store distribution system. The number of stores is actually a reason why the provide such bad service on new releases. To commit to 2-3 copies of every obscure release is a burden they won't assume, especially because it adds very little to their margins.

Thus, IMO, Gamestop will continue until an alternative used game distro system reaches a critical mass OR when a critical mass of games avoids the retail channel. Then the growth goes away and the bean counters start questioning the immense labor and overhead expenses.

Personally, I hate shopping there, and I do it only when I'm looking for a certain used accessory. I certainly don't buy there unless there's no real alternative. I think the last game I bought was Rez for PS2.