Wednesday, March 12, 2008

Gamestop Needs an Intervention: Part 2


Gamestop's disease is worsening (in rehab parlance we call it a disease, not an addiction.) They started by taking games back in trade, moved to giving higher in store credit and today announced they will be mainlining games. Their balance sheet was fattened selling games multiple times and only paying the publisher for the first sale and they need more. It is a great business model . . . in the short term. I have to think they may be overfishing these waters. As a top retailer, the decreased revenue from this practice eventually hits the publishers and impacts budgets.

Now, Gamestop Canada is offering in store credit of the full purchase amount for return of a pre ordered copy of Haze within the first week of purchase. Is there some way to look at this other than as flipping the bird to Ubisoft and Sony? Gamestop will increase pre orders, but will also guaranty a healthy supply of used games for resale to all but the hardest core of gamers. Even though Haze has multiplayer, the hardest core pre order types will play through the game in a week and happily return it to the store just in time for the not so core gamer to pick it up. The friendly counter person will sing the familiar "would you like to buy that used?" refrain and Gamestop significantly expands their margin on AAA title.

Ubi, are you going to say anything?




1 comment:

Alex said...

Looks like Ubi called 'em on it and stopped this promotion.