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Forums - Gaming - Pachter says Best Buy's new games at used prices program will fail

I hope it succeeds but Best Buy will lose money in the long run.



 

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gergroy said:
Undying said:
gergroy said:
Undying said:
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.


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.

I own Wild Arms 3 and its not very good.




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Undying said:
gergroy said:
Undying said:
gergroy said:
Undying said:
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.


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.

I own Wild Arms 3 and its not very good.

lol, I owned Wild Arms 3 at one point.  It did pretty much suck, although I really liked the first two Wilds Arms... the series has just never been able to recapture the psone magic.



darconi 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.

Best Buy is looking to clear some stock first and foremost...Don't let this fool you...and second BestBuy is not competing with Gamestop directly...There are alot less BestBuy's than gamestop...and if gameStop lowers their used games...than people will get less money for their used games...wich they get real low amounts already...so Gamestop can't lower used games that quickly...



 



i dont care, i'm tired of paying 60 bucks per game. I, the consumer wins and thats all that matters.



 

 

 

 

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Onyxmeth said:

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.

 

It's actually very feasible since its something local stores in Australia seems to do on occassions.

The premise is simple. The store will match and sometime even go lower than the price of any competitor with a local presence, the key word here is local presence, which generally mean that a shopper has to go inside a shop and say to the salesman, store X around here is currently selling product Y for Z price, can you do better than that? The Salesman then either agrees in which case he will ring the store you've just mentioned and ask for availible stock before matching or beating it or says that he can't do it.

To apply to the above, it would be up to the buyer to quote an availible store or franchise with a used game price and the store's responsibility to check on said price up, the policy to match the price would only be honoured if the store is considered a 'local competitor' perhaps a suburb or 2 out at the max or the metropolitan area of any major city.




mibuokami said:
Onyxmeth said:

If this were to roll out, Gamestop would be able to put an end to it swiftly. Got a huge title coming out that's going to have a monster first week like Modern Warfare 2? All Gamestop has to do is price the used price at something ridiculous like $20 before it even comes out and advertise it. No one will trade the game in anyways since they're just buying them and won't want the bad trade-in value, and Best Buy just took a $40 hit per game on a gigantic release.

This is a war Gamestop cannot lose.

In Australia, some store will offer price match but only if they can prove that the local competitor has to product your quoting in stock (they would literally ring the competitor and ask for availibility). Would a similiar scheme be consider reasonable for BestBuy? Afterall advertising a second hand game for $20 is a lot different than having a copy at $20 for sale


lol, technically this is part of Best Buys price matching policies already.  The employee is suppose to call the competitor to see if they still have the product in question in stock before they match the price.  So in theory, this is how it is suppose to work. 

However, I have worked for Best Buy for almost 5 years now, and I have never called a competitor once.  I've looked up prices on their websites, but thats as far as I've gone.  With so many different gamestops in one city, I don't see employee's actually bothering with calling stores.  It would take like 1-2 hours in the bigger cities just call on a sale that is likely to generate no profit and only 30-50 dollars in revenue.



Fuck Patcher.



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