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And after playing a couple rounds of DDR, I'l buy a soda from them and get that sweet Zelda Cart I was eyeing.
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Card shops, used video games stores have this rad environment that I want to be in. GameStop has always seemed super corporate and not a place I want to "hang out". They hold weekly/monthly tabletop or video gaming events, and hook up with the local highschools/colleges to be the location for such things They have a video game arcade, or pinball arcade as part of their store. They also sell card games, and run card game tournaments They sell SOME new games, in small quantities That's why the hit every aspect of the gaming market to stay relevant. But the shelf life of games is super long, and it's seems less likely for these shops to be profitable over time. There are 1 off stores everywhere that specialize in used game business. I feel like the answer to GameStop is how retro video games stores are alive. Filed under: Digital Distribution Trade Capitalism This strategy might keep some key physical discs in circulation for a bit, but the company needs to figure out a better way to remain relevant as more and more buy their games without ever leaving the house. While this might be the logical move for GameStop, it really just makes me feel like they're flailing in the face of inevitability. This worked for years, but now GameStop is facing a digital world, one where publishers (including EA) report that around 20% of all console games sold are done so digitally. GameStop's business model has always been about selling a game to a consumer for $60, buying it back from them for a pittance, and then selling it to a second consumer for $50 (and then repeating that process over and over again). Digital bundles reduce the number of available game discs in circulation, limiting GameStop's ability to resell them. Last quarter, used games generated about one-third of GameStop's revenue and nearly 45% of its gross profit.
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not possible to trade in or resell digital games, which poses a big challenge to GameStop's used games business. As Sam Materra points out over on The Motley Fool: Instead, it’s about making sure that there are used, physical copies remaining in circulation. It’s not just that GameStop's executives want you to come into the store to buy new games-the profit margins on new games haven’t ever been the driving force for the retailer's business model. But it's actually a little more complicated than that. Why do this? Well, the gut reaction is to point out that GameStop wants people buying physical discs because you can't buy digital games directly from them.
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This could mean that they'll work out a deal with a major publisher like EA or Ubisoft to include a free physical copy of a recent release. GameStop COO Tony Bartel explained that if Sony and Microsoft continue to release digital bundles, GameStop will turn to "third party" physical-bundles. This isn't just a little experiment either. While other stores sold Xbox One and Playstation 4 bundles featuring digital copies of the football game, GameStop "worked with Sony, Microsoft, and EA" to reach an arrangement for the retailer to provide a physical copy with any new console purchased. This new strategy went into effect just last month, with the release of Madden NFL 16. Almost.ĭuring a recent earnings report conference call, GameStop executives outlined their decision to move away from "digital" bundles and highlighted their recent effort to provide "physical" bundles instead.
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And in almost all of these cases, the game promised on the front of the box is actually a card with a download code printed on it. If you check major retailers like Amazon, Best Buy, GameStop or Target, not only will you find a wide selection of bundles, you'll actually have a hard time finding a brand new console that doesn't have a game packed in with it. Over the last few years, we've seen the return of the classic "pack-in" console bundle, featuring both a game system and a game to play once you get it home. The one thing I'll miss about physical discs are the rad fake covers that GameStop employees make when they're bored.