However if you looks at it, GS is actually losing profit. The BB deal will cause GS to lower their used prices even further, then instead of getting $54.99(+tax) from used games, they would get less than that. If it goes well, then, GS will have to lower their prices further causing a gap in their profit. Besides, I would rather buy games at BB than GS

Gamestop doesn't lose much profit actually. They merely take the games in at maybe $8 and they make $12 per used sale, and with such low trade in value, they'll likely not have to sell many at that price at all. Normally week one they would give like $25 and resell for $55, so they lose like $18 per used sale, but trade ins for the title would be low because no one would trade in something like MW2 for $8. It's a single title, not every game in existence. It would be small potatoes. They still get to makem like $10 or so on every new copy of MW2 they sell and that will be the big potatoes at first. Meanwhile Best Buy is making absolutely no money on this big title starting first week, and would be losing approximately $30 per every sale. That is a real hit.

The problem is, who budges first? I say Best Buy because they can go in the hole if GS plays nasty enough. All GS has to worry about is lowered used game sales. They still have their accessory sales. They have their new game sales. They still have smaller profits coming in from used games. It's still a winning scenario for them. Meanwhile they push Best Buy into losing monsterously on every game they sell if GS sees fit to do so.

@mibuokami-If Best Buy does it like that, I could see a lot of arguments from customers since it's not on the sign. Normally these kinds of price adjustments are based on advertisers' catalogues, or in this case, just the price list. A customer could just keep asking Best Buy to call Gamestop after Gamestop looking for a used copy, and there are a lot of Gamestops. A lot.

I can't wait to buy that new copy of Shin Megami Tensei: Nocturne from Best Buy....oh right they only carry year old or less games.

not true, we still carry Grand turismo 3 :)  However, if it isn't a greatest hit or a platinum hit... we probably won't carry it a year after release :)

Yeah, thats why Gamestop will always beat out Best Buy, Target, Wal-Mart, etc.

I can't go to Best Buy and find a copy of Wild Arms 3. Hell i can't even find new Atlus games at Best Buy.

The other issue is the "inventory game."

If GS for example starts cutting the prices of its used games significantly (new releases), it means lower trade in values, potentially resulting in fewer trade ins, faster turn around time on the trade ins they do receive, which ultimately means fewer used copies available at any given location.

End result, even lower value on trade ins, making buying used games a better proposition than trading them in, assuming you can even buy the used game you want in a timely fashion.

BB on the other hand can resort to tactics like Fry's Electronics, where they announce excellent sales on new releases (games, movies, whatever) with limited availability. Meaning, they only have a relatively small number of copies available on hand to sell at the vastly discounted price (if profits are minimal, I could see certain titles not being stocked at all or minimally at best), or to be doled out in small quantities in an effort to keep shoppers returning to the store in the hopes that they'll buy something while they're there (this works for Fry's).

So there's a definite potential downside to this as well.

Personally, I'm not sure I can see this BB price matching policy lasting forever.

ugh, good lord why would you even want Wild Arms 3?  lol, jk

True, Gamestop will always have a better selection, at least of used games.  I think long run Gamestop is going to run into problems though.  Next generation I think Digital Distribution is going to be huge.  It may not be the exclusive form of getting your games (but I think at least one console will do it that way) but it should hit Gamestop's bottom line pretty hard next gen.  I give Gamestop another 10 years, unless they reinvent themselves into a different kind of company.

Well, I think Pachter will fail.

Either that, or they'll fail for a different reason, like aliens invading the Earth and forcing them to raise prices.

I'm tired of hearing this guy's name.