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TOPIC: Is GameStop (and others) In trouble Next Gen??

Is GameStop (and others) In trouble Next Gen?? 6 years 3 months ago #398299

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Yahoo has an Article on resent stock new for GameStop after Microsoft's reveal of it's Xbox One console...

YahooGames reports
GameStop stock plummets following Xbox One used game reports

Video game retailer GameStop saw its stock take a mighty tumble after Microsoft's Xbox One was announced earlier this week. Much of the stock's fall can be attributed to what some see as a sea change in the used game market, something that GameStop has dominated for years.

Investor concern appears to be due to a report published on MCV stating that Microsoft has negotiated a deal with retailers which sell used games. The deal would ensure that “publishers -- and Microsoft itself -- will get a cut of the lucrative used game market,” according to an earlier report from Yahoo! Games.

Under this plan, retailers would be forced to “integrate Microsoft's cloud-based, pre-owned system into their catalog. Once a game is traded in, the previous owner will see it erased from his or her Xbox One account, since games will be installed on the system's hard drive.”

This isn’t as dire as some predicted. Many speculated that the Xbox One would cut out used games period, an act that would have really hurt GameStop’s bottom line (and alienated many a gamer). Sony has said the PlayStation 4 will allow used games, though it is being coy with the details. The Nintendo Wii U allows for used games.
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Is GameStop (and others) In trouble Next Gen?? 6 years 3 months ago #398300

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Considering GameStop's business model is heavily reliant on the re-selling of games at an inflated price, the prospect of consumers being heavily de-incentivised from purchasing used games is a big blow. Since I highly doubt that publishers would collude with retailers in the manner that is described in the article, perhaps GameStop will take this opportunity to diversify the kinds of products they sell. Perhaps GameStop will become EverythingStop.
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Is GameStop (and others) In trouble Next Gen?? 6 years 3 months ago #398316

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Well, in another week or so we'll learn more about this. Microsoft has said that you could still buy used but there will be a fee.
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Is GameStop (and others) In trouble Next Gen?? 6 years 3 months ago #398318

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I'd like to see the SEC do an anti-trust investigation into the matter of used game sales in next generation consoles. I'd also like to see the SEC truly bring big banks to task for the actions that led to the economic collapse. Realistically, I think I'd see a unicorn before either of those happen.

There's one.
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Is GameStop (and others) In trouble Next Gen?? 6 years 3 months ago #398323

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Haha Red.
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Is GameStop (and others) In trouble Next Gen?? 6 years 3 months ago #398324

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I've always felt used games were a huge scam at gamestop. And that fact that used games made up the majority of their profits makes me believe I was right. Since games are moving toward digital, i dont really have much of an issue with the way things are headed. Basically, I think it's just removing an artificial middleman (gamestop) and replacing it with Microsoft.
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Is GameStop (and others) In trouble Next Gen?? 6 years 3 months ago #398325

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As of late both sony and microsoft have been having Steam like sales so i have a few digital only games on both systems and i don't mind it as i am not really one to sell games.But i don't mind getting them used unless they need a online pass so most of the time there is no point.
One thing that i don't understand is on new games why sell them for £49.99 for the digital when most physical copies are around £39.99/£29.99.
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Is GameStop (and others) In trouble Next Gen?? 6 years 3 months ago #398327

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This is pretty much how I feel about it. I rarely buy used games, in fact I don't think that I have bought any used games this Gen for any of my consoles (Wii, 360, Ps3). I settle on getting the discounted "Greatest Hits" or just buy new. I guess I do still like having the option of buying used if I wanted to. As long as I can still buy my games (hard copy) from a B&B store or online places like Amazon or Newegg, I'm happy.
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Is GameStop (and others) In trouble Next Gen?? 6 years 3 months ago #398338

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The way GameStop handles used game sales is a scam, but it's a scam that a lot of small Mom and Pop stores engage in. That is why I think is truly going to get screwed out of this deal. The consumers, while largely ignored, will have their demands met if they refuse to buy the product. If a small retailer goes out of business, in an environment where big giant retailers rule the roost, what do the publishers care? If this goes forward as proposed, smaller video game retailers will start to evaporate in the same way that small local bookstores did.
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Is GameStop (and others) In trouble Next Gen?? 6 years 3 months ago #398349

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Exactly. Not to mention, new game sales only crop up due to used game prices. If you eliminate the sale of used games, those new titles will stay at a higher price for much longer, just like we've seen happen with digital copies currently on consoles.

Also, it's not a scam to charge an overhead. This is like saying a restaurant that charges you more than 20 cents for fountain drinks is scamming you. Business have expenses, and they pay for them by charging customers. While these businesses profit from this, it's also important that in our current used game system, smaller groups can provide competition. What we lose with the elimination of used game stores isn't a middleman, it's choices.
Last Edit: 6 years 3 months ago by Celeste.
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