Best Buy surprised the gaming public last week with the revelation that it was testing a new pricing program that would see the retailer selling new games at used prices. Specifically, the test store in Utah will match the used game prices of both GameStop and Game Crazy. According to Wedbush Morgan analyst Michael Pachter, the program isn't likely to last very long.

"I don't think it will do well," Pachter tells Game Politics, adding that price matching forces Best Buy to "either cuts their profit per game in half, or wipes it out altogether." He expresses the opinion that Best Buy can't afford to chop $10 off the price of a $60 game, saying that such a practice won't be effective "in the long run." Furthermore, even if the program does take off, Pachter believes GameStop will simply lower its used game prices "to the point where Best Buy can't match without losing money."

He has a point, but, from the consumer perspective, it's hard to see a downside. Whether Best Buy's program succeeds or not, it still means lower prices, if only for a short time.

(Joystiq)

Well, that pretty much ensures its success.

What Millennium said.

I would agree with Pachter in this case. In the race to the bottom, Gamestop can go down to practically 0 because they can buy the used game for practically 0. Best buy will always have to pay the manufacturer.

Its a losing game for Best Buy.

It may be a short-lived program if GS decides to play nasty. However, this one store test market I do think will do very well, enough for BB to roll it out nationwide. That's when GS will play hardball. They may force used prices down enough to make BB stop the program. But, if BB stops the program, I foresee them telling stores to hold onto the signs. If GS goes right back to their $5 (not $10 like Pachter claims) off for used, I can see the signs coming back out, and a tug-of-war ensuing. My ultimate prediction is that BB will just do a 10% off MSRP of new games across the board (and advertising the percentage as something like "getting a new game for a used price"), forcing GS to keep their used prices lower than they currently are. And we, as gamers, would win.

does gamestop advertise the used game prices? cause if they dont, i dont see how they can match them without knowing the prices.

They have price catalogues in store

Whatever ends up happening, we as consumers win.

Yeah, If this actually works, then BB will set off a chain of events that makes GS lower their prices on used games ( maybe new games). It's basically a win for the consumers since games would be cheaper. But can BB afford to lower their prices on new games?

@Dunno

If they do lower the prices of used games that much they will have to decrease what they pay for used games. Since they are already buying them dirt cheap, people are going to be less likely to sell their games to Gamestop. So this will put a huge risk on Gamestop's profit