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Forums - Gaming - GameStop plunges 18%: lower-than-anticipated software sales + PS4 XOne reduced gross margin

I'm happy about the bigger than anticipated PS360 software drop, the sooner developers will ditch the old consoles and focus only on current/next gens (whatever you like to call them) the better.
7th gen overstayed it's welcome, 2014 should be the last year of cross gen games, now seemingly also from a business perspective.



So it is happening...PS4 preorder.

Greatness Awaits!

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d21lewis said:
I remember when I couldn't comprehend life without a video rental store or physical copies. It took a loooong time but the impossible happened. I think it will be years or longer for the gaming industry but I can see Gamestop eventually losing its role as digital distribution grows bigger each year.

They've had a hell of a run, though. Unfortunately, nothing lasts forever.

Kind of crazy to imagine a world without Gamestop at this point. As irritating as some of their sales practices can be, I've always enjoyed having access to a nearby specialty store when I didn't want to wait and order one of games online. Still, perhaps they'll find a way to turn things around in the next few years? Hard to say now, but I would be a bit sad to see one of the biggest names in game sales go under.



Hmm

eFKac said:
I'm happy about the bigger than anticipated PS360 software drop, the sooner developers will ditch the old consoles and focus only on current/next gens (whatever you like to call them) the better.
7th gen overstayed it's welcome, 2014 should be the last year of cross gen games, now seemingly also from a business perspective.

Can't agree with that. 

The 7th gen is a "victim" of its own success. The sheer number of active consoles in circulation means MS and SCE have to continue supporting them. One year isn't going to cover it and regardless of how well the XOne and PS4 sell through 2014, neither company can just dump their cheaper offering to lower tier markets. 

7th gen support ends when it no longer becomes economically viable. One year from now won't change that. Sales will diminish, both in hardware and software, but as long as they remain profitable, no sensible business just shuts that off prematurely. 



GameStop can go away for all I care... I don't like their practices. I don't like going through checkout. Amazon FTW.

The GameStop experience:


We have this game used. Would you like that instead?
Would you like to reserve any games?
Are you sure? We have X, Y, and Z coming out?
Lets check your rewards card to see if you have time left on it!
Hey I know you wanted this game new, but let me take this "New" copy out out of a disc holder and put it in that case we used for display, since we don't have any sealed copies left! We will still charge you the "New" price too! PLEASE TRUST US, IT'S STILL NEW!! (lies)
Would you like to purchase disc protection for your game?



Current gaming platforms - Switch, PlayStation 4, Xbox One, Wii U, New 3DS, PC

Cheddarchet said:
d21lewis said:
I remember when I couldn't comprehend life without a video rental store or physical copies. It took a loooong time but the impossible happened. I think it will be years or longer for the gaming industry but I can see Gamestop eventually losing its role as digital distribution grows bigger each year.

They've had a hell of a run, though. Unfortunately, nothing lasts forever.

Kind of crazy to imagine a world without Gamestop at this point. As irritating as some of their sales practices can be, I've always enjoyed having access to a nearby specialty store when I didn't want to wait and order one of games online. Still, perhaps they'll find a way to turn things around in the next few years? Hard to say now, but I would be a bit sad to see one of the biggest names in game sales go under.

Why? Because that's one of the few places you hit every time you go to the mall? 

I walk by two of them on a fairly regular basis (financial district) and I have to say I never have the urge to make a trip into either. Unless I'm looking for a specific item or special order item not available online, it's just not going to happen. 

I would rather check out the game section at a big ticket retailer that I'm already shopping at, not that they have anything that I'm interested in; usually I'm just checking because I'm already there. 

GS' business model has been based upon used game trade and peripherals for years now and that's the niche they've built for themselves and if that no longer remains a profitable business, it was their business model in the first place. No one else to blame. 

Still, I'm curious to see how/if they adapt and evolve to the current changing game entertainment market that no longer favors traditional brick and mortar business models. 



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Cheddarchet said:
d21lewis said:
I remember when I couldn't comprehend life without a video rental store or physical copies. It took a loooong time but the impossible happened. I think it will be years or longer for the gaming industry but I can see Gamestop eventually losing its role as digital distribution grows bigger each year.

They've had a hell of a run, though. Unfortunately, nothing lasts forever.

Kind of crazy to imagine a world without Gamestop at this point. As irritating as some of their sales practices can be, I've always enjoyed having access to a nearby specialty store when I didn't want to wait and order one of games online. Still, perhaps they'll find a way to turn things around in the next few years? Hard to say now, but I would be a bit sad to see one of the biggest names in game sales go under.

Yeah, Gamestop does some shitty things sometimes (I personally witnessed a salesman tell a lady she needed to buy a cooling fan attachment for her PS2 or it would CATCH ON FIRE, for example) but I've been reading their salespaper and seeing what was available since the days of Electronic Boutique and Babbages.  I have a lot of games I wouldn't have gotten any other way if EB Games/Gamestop didn't exist and most--not all--but most of the employees have been really cool.  I still stop by one every chance I get.  It would be the end of an era.



daredevil.shark said:
They cheat gamers by selling used games as new. Because of them used games are seen as a negative thing. They deserve this.


and they sold rare reprinted new games as used so they could ask a higher price...



greenmedic88 said:
Cheddarchet said:
d21lewis said:
I remember when I couldn't comprehend life without a video rental store or physical copies. It took a loooong time but the impossible happened. I think it will be years or longer for the gaming industry but I can see Gamestop eventually losing its role as digital distribution grows bigger each year.

They've had a hell of a run, though. Unfortunately, nothing lasts forever.

Kind of crazy to imagine a world without Gamestop at this point. As irritating as some of their sales practices can be, I've always enjoyed having access to a nearby specialty store when I didn't want to wait and order one of games online. Still, perhaps they'll find a way to turn things around in the next few years? Hard to say now, but I would be a bit sad to see one of the biggest names in game sales go under.

Why? Because that's one of the few places you hit every time you go to the mall? 

I walk by two of them on a fairly regular basis (financial district) and I have to say I never have the urge to make a trip into either. Unless I'm looking for a specific item or special order item not available online, it's just not going to happen. 

I would rather check out the game section at a big ticket retailer that I'm already shopping at, not that they have anything that I'm interested in; usually I'm just checking because I'm already there. 

GS' business model has been based upon used game trade and peripherals for years now and that's the niche they've built for themselves and if that no longer remains a profitable business, it was their business model in the first place. No one else to blame. 

Still, I'm curious to see how/if they adapt and evolve to the current changing game entertainment market that no longer favors traditional brick and mortar business models. 

Not at all. Growing up, GameStop was one of the only stores I ever actually had access to. When you grow up in a town with a population of a whopping 900 people, you tend to be a bit limited on selection. That's certainly not the case now that I'm in a larger place and can drive, but I still appreciate the fact that they were there. I won't deny that their model is growing outdated, but I do appreciate what they did for me as a fledgling gamer in the past. If they can find a way to change their image in the coming years, more power to them. For better or worse, they're one of the largest retailers dedicated to gaming left, and for someone like me, seeing them go would be almost like the end of an era.



Hmm

d21lewis said:
Cheddarchet said:
d21lewis said:
I remember when I couldn't comprehend life without a video rental store or physical copies. It took a loooong time but the impossible happened. I think it will be years or longer for the gaming industry but I can see Gamestop eventually losing its role as digital distribution grows bigger each year.

They've had a hell of a run, though. Unfortunately, nothing lasts forever.

Kind of crazy to imagine a world without Gamestop at this point. As irritating as some of their sales practices can be, I've always enjoyed having access to a nearby specialty store when I didn't want to wait and order one of games online. Still, perhaps they'll find a way to turn things around in the next few years? Hard to say now, but I would be a bit sad to see one of the biggest names in game sales go under.

Yeah, Gamestop does some shitty things sometimes (I personally witnessed a salesman tell a lady she needed to buy a cooling fan attachment for her PS2 or it would CATCH ON FIRE, for example) but I've been reading their salespaper and seeing what was available since the days of Electronic Boutique and Babbages.  I have a lot of games I wouldn't have gotten any other way if EB Games/Gamestop didn't exist and most--not all--but most of the employees have been really cool.  I still stop by one every chance I get.  It would be the end of an era.

Okay, I never witnessed anything quite that bad, but other than that this post captures my sentiments exactly (especially the bolded).

... Actually, I probably would've laughed if I'd been there when the salesman was giving that pitch.



Hmm

Train wreck said:
Reduced gross margins on new consoles = people not buying inflated bundles consoles and are waiting for just standalones themselves.


Are moving to other devices. Any reason they must be wait for the system?



"Excuse me sir, I see you have a weapon. Why don't you put it down and let's settle this like gentlemen"  ~ max