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Munkeh111 on 07 June 2013
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Aielyn said:
Munkeh111 said:
I would do what they are doing, branching out into digital downloads, they bought Impulse a while ago

I think you are possibly simplifying the problem. The fundamental problem is that consoles are threatened, sales are down across the board. So far the Wii U has failed to excite consumers and I don't see it as being enough to save gamestop in its current state even if the games do come and get consumers interested again.

The problem is, it is just not clear what Sony and Microsoft's demands are, or if it is really the publishers. I think there are too many unknowns to make a proper prediction

I really don't see how "branching out into digital downloads" would help at all - all of the contexts where digital downloads can be done, you can do them directly rather than through Gamestop already. The only way I see such "branching out" working is if they set up a true Steam competitor. That means not just another distribution platform (Steam already does that more than well enough), but something that establishes value over Steam by doing something more. I just don't see it happening.

And you're right that I'm simplifying the problem. When you don't have all of the information necessary to do a perfect analysis, you make simplifying assumptions to make the problem more tractable. This is one of the key methods of mathematical modelling, and it works just as well in any other field where modelling and speculation are required. It's standard, as far as I know, in economical modelling, for instance. So let's establish exactly what I'm assuming:

1. The public isn't particularly enamoured by the idea of the PS4 and XBO having such DRM, and will (assuming they have it, of course) see slower sales than they otherwise would have.
2. Gamestop wishes to stay in the retail video gaming business.
3. Nintendo are not changing their current plans, DRM will not be present on the Wii U or 3DS in any such form.
4. Gamestop makes most of its profits from used game sales due to relatively small retail margins on new games.
5. Videogaming isn't in a decline, it's in a temporarily suppressed state due to a combination of economic climate and increasing game prices.
5b. Current DRM plans from MS and Sony will see game prices at least stay the same, if not rise.

Do you have any problem with any of these simplifying assumptions?

Impulse was a steam competitor when they bought it, I don't know what they are doing with it now.

What I am trying to say is that we don't have enough information to start making any sort of model. Your assertion that people hate this DRM, for example, I based on the more hardcore gaming community especially those on twitter. I know many who aren't bothered by it and we know Microsoft is trying to attract more than just the hardcore gaming market, they seem to think this generation can reach 1bn sales...

Nintendo aren't going to change their policy, but Microsoft and Sony aren't really the problem. They are allowing the publishers to limit used games, but they are not doing it themselves. If it is such a big monetary issue, then we won't be seeing as many games on Wii U, just look at EA

Yes, so Gamestop makes their money from used games, and it remains to be seen what cut the publishers take. That is the key missing information, if it is about $5, then I think there won't be a problem, but if it is more then it might get tricky

I don't think that videogaming is decline, I think console videogaming is in decline.