As store closures mount up, is there hope left for physical games outlets?

[The_Liquid_Laser]

yvanjean said:

The_Liquid_Laser said:

Yes, if you take the games away, then stores won't want to sell hardware.  At least they won't sell it at current prices.  Most likely what you will get is hardware prices shooting way up, and then sales going way down.  Accessories alone aren't enough to sustain the current model without games.

Retailers don't get to assign MSRP that's on the manufacturers. Have you never been to a Costco in your life?, they only have hardware/accessories, gift cards with hardly any software. I won't even call what your saying a theory since it's simply flawed thinking. If there are any profit to be made online or brick and mortar retailers will sell it.  Every store are already shrinking and getting ready to rid of dedicated store space for games. You really think that Walmart and company got to decide how much the Xbox one X was going to cost? They told Sony that the PS4 must cost $399. 5-10% profit margin on a $500 consoles is $25-50 per units sold. 

I go to Costco regularly.  Their business model is different from every other retailer, so they are a bad example.  Also they do sell games too, but they don't have near the selection of anyone else.  

So, maybe a pure digital model can work if Costco is the only one selling hardware, but really they are just a small chunk of the game market.