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Forums - Gaming - Gamestop Stock Drops 13% Following Amazon Trade-In Announcement..

sega4life on 05 March 2009

13% damn....

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GameStop stock drops 13% following Amazon trade-in program announcement

by Dustin Burg { 1 minute ago }


Even though GameStop's CEO is confident that Amazon.com's plan to enter the used video game market won't be successful, it appears GameStop investors aren't as optimistic. Shares of the company dove 13% on Thursday, ending the trading day $3.54 lower.

Variety reports that Amazon.com's used game ambitions (and to a much lesser extent, Toys 'R' Us' plans) worried investors today, causing a huge GameStop stock sell-off. Used game sales account for 44% of GameStop's gross profit and having Amazon as a competitor in one of its most lucrative operations just doesn't bode well for its stock price. As far as we're concerned, competition among businesses is always good.

Shares of Amazon stock seem to be unaffected by today's news.

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Heres what Gamestop had to say earlier....

GameStop: Amazon trade-in program has zero percent chance of working

by Griffin McElroy 


Thanks to advances in internet technology, inflammatory retorts between industry figures can now be developed and distributed at the speed of light. For instance, when Amazon announced today that it'd begun experimenting with a trade-in program for video games, GameStop CEO Dan DeMatteo formulated his response and fired it off to Edge Magazine in the blink of an eye: "I give the probability of this working at zero," he promptly declared.


DeMatteo explained that Electronics Boutique attempted to apply the same mail-in trade offer that Amazon is working with several years ago, reaping unfavorable results. "With consumers, there is an immediacy for currency when they want to buy a new game," he explained. He also stated that -- okay, listen, we'd love to finish this post, but we've got this copy of Ty the Tazmanian Tiger 2: Bush Rescue sitting on our bookshelf, and if we don't trade it in within the next few minutes, we are going to totally freak out.


PS4 Preordered - 06/11/2013 @09:30am

XBox One Preordered - 06/19/2013 @07:57pm

"I don't trust #XboxOne & #Kinect 2.0, it's always connected" as you tweet from your smartphone - irony 0_o

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ssj12 on 05 March 2009

pretty much GameStop is running scared now. Which is good.



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scottie on 05 March 2009

Denial comes first...

Good, good



kitler53 on 05 March 2009

wow, didn't hear that amazon was doing this. great news as far as i'm concerned. i won't be selling anything to amazon but i might be buying.



xlost7 on 05 March 2009

This is so hilarious. Just recently about a hour ago. I went to Gamestop and bought Grand Theft Auto 3 on the original Xbox for $5. I thank cashier and told him to have a good night. Before I could leave the counter he said "by the way we do have a trade-in program, feel free to come trade in any of your old games". I seriously laughed my butt off!!!



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dsister44 on 05 March 2009

now the prices r coming to go down and that is going to be awesome cheaper games for dsister44



sega4life on 05 March 2009
kitler53 said:
wow, didn't hear that amazon was doing this. great news as far as i'm concerned. i won't be selling anything to amazon but i might be buying.

 

Ya I had no idea either...

 



PS4 Preordered - 06/11/2013 @09:30am

XBox One Preordered - 06/19/2013 @07:57pm

"I don't trust #XboxOne & #Kinect 2.0, it's always connected" as you tweet from your smartphone - irony 0_o

DMeisterJ on 05 March 2009

lol. Gamestop used game practices are being copied by the competitors. Good. Now maybe they won't trade them in on pennies on the dollar, and turn around and sell them for double the amount they took it off of your hands for. Amazon is more convenient, since you don't have to step into a smelly store, and get stupid deals pushed on you, and can use the money on other stuff aside from games, whereas if you want cash from GS, they take 20 percent off. I could see this amazon thing being huge.



JPL78 on 05 March 2009

My only problem with Gamestop is unless you catch a good special going on they do not give you enough trade. A brand new game, on day one, will fetch maybe 25 dollars.... they sell that same game for 55. FYE gives you much more credit 90 precent of the time. I've had credit for a single game at FYE hit 36 dollars which is much more reasonable.



HALOOOOOOOO on 05 March 2009

I've never used Amazon, but this idea seems pretty good.