GameStop's quarterly call to investors was filled with enthusiasm, as the leading retailer seems content with sales over the past quarter. On the heels of a record breaking quarter, GameStop CEO Dan DeMatteo said he remains confident in the viability of the used game market: “We do not anticipate an impact to our used game margins.”
Recent pushes by developers to outright destroy GameStop’s business model and publishers to diminish the market has done nothing to faze GameStop and their widening market. DeMatteo believes that such ‘innovations’ as the Online Pass from EA Sports will help publishers “better leverage their [IP]…through downloadable content sales to both used players and new game buyers.”
His reasoning? Helping to market and advertise online content for publishers will in essence help drive sales for the retailer. Helping to promote the recent Modern Warfare 2 Stimulus Pack was of huge benefit to GameStop, which saw a major increase in sales of Xbox Live points and PSN Network cards. A continued shift towards enhancing DLC marketing and desirability would be of incredible benefit to GameStop’s overall business plan.
“GameStop consumers are ahead of the mass market in digital adoption," he adds. "Our investments in proprietary point-of-sale tech have put us in a position to partner with publishers as they grow their digital offerings."
And working with publishers to market, promote and sell DLC "extends the reach of the GameStop brand as a multi-channel game destination," according to DeMatteo. "We're having conversations with multiple publishers on leveraging the potential of digital sales at GameStop stores."
GameStop sees 75% of new sales from 5 major companies, and with increasing sales figures going towards downloadable content, it seems as though GameStop is well aware and is ready for the coming shift ahead that could potentially see a reduction in used sales, whether GameStop believes it or not.
6 Comments
May 20, 2010
I bet secretly they are a bit worried about the online pass, as several other publishers will very soon follow suit.
August 18, 2010
Hmmm. I have read many articles on this subject, but it seems that there is either massive
ignorance by retailers that sell pre-owned games (or even rent them "Blockbuster"), or there is
some serious denial afoot. Does anybody see the inevitable not too distant future?
The Trojan Horse
1. Xbox live arrives and gamers around the world song and dance. Life is good. But are people
willing to pay for multiplayer online play? After all, they have gamed on thier PC's for years
at no cost. (Blizzards WoW kinda showed that there is promise).
2. 4-5 years later Xbox Live is unstoppable. The Xbox Live marketplace is making money hand
over fist with thier questionable "Microsoft Points" monetary system. Millions of gamers
can't get enough of the expierience. Potential DLC sales are not even close to peaking.
3. Behind closed doors, publishers are cursing the used videogame market and all it stands
for. Years ago, retail stores purchased thosands of cartridges and disks every single month
for eager gamers to buy. Since there was no trade in program for gamers, publishers raked
in the loot! But NOW it's changed. The industry longs for "The Good 'OL Days!"
4. The used game market preys on the weak gamers who will trade in 25 of thier used games
in order to get the new "recycled for yet another year" Madden Football. (That was SLIGHTLY
exaggerated, but you get my point.) Oh, and they paid $60 a pop for the 25 games they just traded in, only to find them marked down $5 less than the retail price the next day and placed on the store shelves. Amazing.
5. Sony has the master plan. They 1-up the PC market which currently REQUIRES online activation for nearly ALL new games. Sony releases the PSP GO, a diskless handheld that
eliminates the need for a retail store PERIOD as a distributor. After all, why bother to go to
EB Gamestop to purchase a game card for a digital download with a credit card? Just use
your credit card from the couch of your game room and buy direct from Sony! Duh!
6. Both the PC and PSP markets have been effectively KILLED in EB Gamestop. If you don't
belive me, go in any store right now and check the inventory for either types of software, mainly new product. Oh, and ask to buy a used PC game. Then have them explain why this is not
possible for anything released in the last couple of years.
7. EA is a little more patient than Sony at this time. Fully aware that not all homes have the
necessary "High speed internet" just yet, they are crunching the numbers even as we speak.
But if enough people purchase DLC and the numbers show that on-line gamers alone can carry the load of profits for them, they will IMMEDIATELY go digital download only. Heres why:
a. We won.t need to pay UPS shipping.
b. We don't have to pay for packaging our product.
c. We don't have to pay to press any disks anymore.
d. EB Gamestop can't "RESELL" our product anymore.
e. We can charge what we want, even for older games.
f. We can now charge for features in the game that used to be free.
g. We can ship unfinished games, and patch them later.
h. You can only but it from us, the publishers.
Simply put, the Trojan Horse rode in on Xbox Live. Straight into your homes. You added fuel
to the fire buy making LIVE so popular. Now that so many can't survive without Xbox Live,
they have you right where they want you.
Skip Jones simply saying EB-Gamestop, your days ARE numbered. We know it even if you
don't. Only a fool couln't see this coming.
Done!
August 18, 2010
August 18, 2010
Hmmm. I have read many articles on this subject, but it seems that there is either massive
ignorance by retailers that sell pre-owned games (or even rent them "Blockbuster"), or there is
some serious denial afoot. Does anybody see the inevitable not too distant future?
The Trojan Horse
1. Xbox live arrives and gamers around the world song and dance. Life is good. But are people
willing to pay for multiplayer online play? After all, they have gamed on thier PC's for years
at no cost. (Blizzards WoW kinda showed that there is promise).
2. 4-5 years later Xbox Live is unstoppable. The Xbox Live marketplace is making money hand
over fist with thier questionable "Microsoft Points" monetary system. Millions of gamers
can't get enough of the expierience. Potential DLC sales are not even close to peaking.
3. Behind closed doors, publishers are cursing the used videogame market and all it stands
for. Years ago, retail stores purchased thosands of cartridges and disks every single month
for eager gamers to buy. Since there was no trade in program for gamers, publishers raked
in the loot! But NOW it's changed. The industry longs for "The Good 'OL Days!"
4. The used game market preys on the weak gamers who will trade in 25 of thier used games
in order to get the new "recycled for yet another year" Madden Football. (That was SLIGHTLY
exaggerated, but you get my point.) Oh, and they paid $60 a pop for the 25 games they just traded in, only to find them marked down $5 less than the retail price the next day and placed on the store shelves. Amazing.
5. Sony has the master plan. They 1-up the PC market which currently REQUIRES online activation for nearly ALL new games. Sony releases the PSP GO, a diskless handheld that
eliminates the need for a retail store PERIOD as a distributor. After all, why bother to go to
EB Gamestop to purchase a game card for a digital download with a credit card? Just use
your credit card from the couch of your game room and buy direct from Sony! Duh!
6. Both the PC and PSP markets have been effectively KILLED in EB Gamestop. If you don't
belive me, go in any store right now and check the inventory for either types of software, mainly new product. Oh, and ask to buy a used PC game. Then have them explain why this is not
possible for anything released in the last couple of years.
7. EA is a little more patient than Sony at this time. Fully aware that not all homes have the
necessary "High speed internet" just yet, they are crunching the numbers even as we speak.
But if enough people purchase DLC and the numbers show that on-line gamers alone can carry the load of profits for them, they will IMMEDIATELY go digital download only. Heres why:
a. We won.t need to pay UPS shipping.
b. We don't have to pay for packaging our product.
c. We don't have to pay to press any disks anymore.
d. EB Gamestop can't "RESELL" our product anymore.
e. We can charge what we want, even for older games.
f. We can now charge for features in the game that used to be free.
g. We can ship unfinished games, and patch them later.
h. You can only buy it from us, the publishers.
Simply put, the Trojan Horse rode in on Xbox Live. Straight into your homes. You added fuel
to the fire buy making LIVE so popular. Now that so many can't survive without Xbox Live,
they have you right where they want you.
Skip Jones simply saying EB-Gamestop, your days ARE numbered. We know it even if you
don't. Only a fool couln't see this coming.
Done!
August 18, 2010
August 18, 2010
Sorry for double post, the first one had a spelling error.
Skip Jones