• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

GameStop Worried Digital Games Are Too Cheap

Maybe I'm just thinking too plainly here, but isn't what he is talking about really just price fixing? Working together with competition to set a standard on pricing? Just a question.
 
Comments such as those in the OP boil my piss.

Just give the retailers parity (lol) and let them set their own prices as they do with physical releases.

The underlying costs of physical/digital are closely guarded and I accept that digital delivery infrastructure does not come free but I cannot believe that the costs of digital outweigh the costs of physical.
 

AndyD

aka andydumi
Live/PSN games go on sale all the time. I'll concede that very rarely do we get sales during the first month of release but they do go on sale. Both services have games on sale on a weekly basis. I would suggest checking out CAG or keeping up with sales threads here.

I have seen PS3 games on PSN have flash sales but I am yet to see a PS4 game on sale that was lower then Physical copies I could buy locally.

While they do go on sale, they rarely if ever are comparable to disc sales. Even months after release. That's what I meant. So for them to argue that digital average is too low seems odd considering the physical average must be even lower due to even quicker and deeper sales. Then again retailers may be paying higher costs to Sony/MS than what they sell to us on sales, unlike digital. That said, why don't we see Amazon/Walmart/Dell and the rest also sell digital versions of everything they see physically?
 

FireCloud

Member
I believe if broadband wasn't so poor in the US, Gamestop would have already folded. It's difficult for some to download a 50GB game. With pre-loading being available now, that's just another reason to more seriously consider an all digital future. I never sell back my games anyway, other than a period of weakness when I culled my PS2 collection (seller's remorse, vowed to not do that again), so the resell argument doesn't really apply to me.

I admit, I used to be a regular customer at Gamestop. The one I went to used to have some nice associates working there. I always got to know the managers and established a good relationship with them. But with the turn over and my cutting back on day 1 purchases, there's now an entire new crew working there who I don't know. Shame, other than NeoGAF, that was the only place I could go and talk about my hobby with others.
 

Kureransu

Member
Gamestop/EBGames is almost irrelevant. Where I live, they were offering $30 for advanced warfare or Master Chief Collection 5 days from launch. I was curious as to their prices.

They sell the game for $69 here new and they sell used for $64.99. That means they'll give you less than half for your game, and charge only $5 less than new. So how can they say the price of games shouldn't be so low, when that's what they're valuing your games at? Even during launch week.

Seriously, call them up and ask them how much they'd give you for used game a day after launch. I think the digital industry will be great for gaming. Get games out of the grip of retailers. Do you know how many people are getting money back from bundles while providing those who want games, the ability to get them cheaper? Loom how many can save $10-$20 on new games buying codes off of Craigslist etc.
I think you're looking at it wrong. Before i go further let me say I don't trade in games, nor am I defending gamestop, but i see this argument and i think people are missing something.

If you sold gamestop your halo for 30 bucks (and i think it's like 35 or 40 if you are a rewards member) and they sell it for 54.99, that means they only make 15-25 dollars on the game, since they paid 30-40 to get it from you. So, How is it wrong from them to aim to make the same amount, if not less, on the game that you did?
 

John Harker

Definitely doesn't make things up as he goes along.
Comments such as those in the OP boil my piss.

Just give the retailers parity (lol) and let them set their own prices as they do with physical releases.

The underlying costs of physical/digital are closely guarded and I accept that digital delivery infrastructure does not come free but I cannot believe that the costs of digital outweigh the costs of physical.

See my post on the precious page (also, everyone)
 

Kill3r7

Member
They should be more worried about the mobile market of cheap asses demanding $1 aaa titles in the future.

That's not really GS' problem as they'll be long gone by then. However, the industry will have to deal with this issues in the next couple of decades.
 
Gamestop only gives a fuck about themselves. The sooner they go under, the better.

If GS is trying to keep the price of digital games up then I hope it does go out of business. Trying to nickel and dime your customers, and sell them garbage guides and scratch protection plans is one thing. Trying to make me pay more somewhere else goes beyond tolerable corporate greed efforts.

Exactly. They're worried no one will buy from them if digital prices are low. And why should we? They've been ripping people off for years.
 

HariKari

Member
I just hope that PS4 digital game would be as cheap as PC game on Steam :(

Won't happen until physical media becomes less popular with console players. I thought MS or Sony might go big this gen with $40 day 1 digital titles but no dice. The margins for digital (along with no resale) just makes it immensely more profitable. If there's one thing you can count on, it's that the big players will chase the profit. Steam is successful because the prices can fluctuate without any stakeholders getting mad.
 
Are physical games are too expensive?
No, digital games are too cheap.

IAt9wjT.jpg
 

AndyD

aka andydumi
Won't happen until physical media becomes less popular with console players. I thought MS or Sony might go big this gen with $40 day 1 digital titles but no dice. The margins for digital (along with no resale) just makes it immensely more profitable. If there's one thing you can count on, it's that the big players will chase the profit. Steam is successful because the prices can fluctuate without any stakeholders getting mad.

$40 is a huge difference. Even if they matched what Amazon and others do and make it $52-53 day one, it would be an improvement. Particularly on first party or single player games that are trade in fodder, things like Infamous or Thief. Especially since more often than not to go digital you have to forego retailer specific pre-order bonuses.
 

Deadstar

Member
The lower the prices the more people buy the game. It curbs piracy and allows games to be played by anyone. Gamestop is the king of greed.
 
Once Gamestop's gone, I'll literally have no dedicated gaming shops near me.

Sad to think about :(

As much as I dislike Gamestop, having a chain of stores dedicated to our hobby is a good thing. We're not going to be able to rely on big box stores for anything but the big releases, and there is zero incentive for them to stock used accessories. Where else are you going to go for legacy peripherals? I guess we're all assuming if Gamestop went under, cool independent game stores that never hassle us about preordering would take their place, but I'm doubtful.

Maybe Gamestops could also become servers, essentially? Instead of buying a physical release from them, I could bring in a thumbdrive and get my digital copy downloaded there, instead of using my capped, throttled ISP data plan? That's worth a "convenience fee."
 
Some games I purchase day one and have no problem paying full price, others I'm not willing to pay full price for and I'd rather skip the game entirely if it means having to buy a cheaper physical copy when I want the digital copy. If I want a digital copy of a game and I see the new Physical copy $25 cheaper , I end up not purchasing the Digital or the Physical copy.

Amazon sells Physical and Digital PS4 games. Its pretty obvious that when Amazon can deliver a brand new AAA title to your door for $25 cheaper then its digital counterpart that Sony is price fixing the digital purchases.

I can understand Sony not wanting to undercut retailers but they should be able to match them in price at a minimum.

If sony wants to force overpriced digital Games on the market then fine . I'd rather they don't make any $$ from me on the physical purchase either. I usually just skip the game entirely or I pick up a used copy on ebay.
 

mcrommert

Banned
As much as I dislike Gamestop, having a chain of stores dedicated to our hobby is a good thing. We're not going to be able to rely on big box stores for anything but the big releases, and there is zero incentive for them to stock used accessories. Where else are you going to go for legacy peripherals? I guess we're all assuming if Gamestop went under, cool independent game stores that never hassle us about preordering would take their place, but I'm doubtful.

Maybe Gamestops could also become servers, essentially? Instead of buying a physical release from them, I could bring in a thumbdrive and get my digital copy downloaded there, instead of using my capped, throttled ISP data plan? That's worth a "convenience fee."

Ridiculous...we have the internet...why would we need those stores?
 

spookyfish

Member
Once Gamestop's gone, I'll literally have no dedicated gaming shops near me.

Sad to think about :(

Serious question: what can you get at GameStop that you can't get online at Amazon or even Best Buy? (Obviously the exclusives, but the sooner those go away, the better.)
 
For fuckin real? Have they seen the price of games on PSN? Everything is still ludicrously priced. You might save 5 bucks vs store price on big name games, but thats it.
Steam is where the real deals are, and GS barely bother stocking PC games anymore, so no loss for them.

This.

Although, my guess is that the average price of $22 takes into account all of the gamers who buy digital long after initial release when heavy discounts kick in. It makes sense. Middle class wages have fallen in the US over the past 35 years. People have less disposable income. So, of course, many gamers are going to seek out deals on games, especially digital which has zero resale value.

Personally, I wont spend more than $10 on a digital game mainly bc I have no way to sell, trade, or lend it. Unlike buying digital on Steam, I have no reassurances I'll have access to digital console games years down the road because successive consoles usually dont have backwards compatibility. And digital has no physical collectors value. So, most of my digital collection on 360 and PS3 are hits from yesteryear that went on sale, titles I never picked up or ones I'm willing to double-dip on to take advantage of the jukebox convenience for $5-$10 each. In contrast I'll usually spend about $25 on average for physical copies, with my personal upper limit of $40 for a lengthy RPG.

For my tastes most games just aren't worth anywhere close to $60. Annualized sports games with a few tweaks and a roster update are not worth more than $20-$25 to me. Ditto annualized series like COD which have extremely short single player campaigns and hit or miss multiplayer. I cant remember the last time I paid $60 for a game and I likely never will.
 

SmokedMeat

Gamer™
Serious question: what can you get at GameStop that you can't get online at Amazon or even Best Buy? (Obviously the exclusives, but the sooner those go away, the better.)

Older games that Best Buy would've pulled long ago. Amazon also can rock you on older items, depending on the seller.
 
Oh be quiet, Gamestop. Let the market decide. If digital games need to be cheaper because there's a perceived value that digital games should cost less by the consumers, then that's how it should be.
 
Maybe I'm just thinking too plainly here, but isn't what he is talking about really just price fixing? Working together with competition to set a standard on pricing? Just a question.

Thats exactly what he's talking about. Because we have a government that is essentially owned by corporations they haven't enforced the Sherman Anti-Trust act since Reagan was in office. Which is how entire industries get away with monopolies/duopolies and associated collusion to price fix. The fact that he just openly talks about price fixing like its no big deal only proves that US regulatory and enforcement has been a joke for so long that people like him dont even realize that what he's talking about is illegal.
 

Tobor

Member
Cars were an objective improvement over horse and buggy, digital gaming isn't over physical copies.

Digital is an overall objective improvement. There are of course subjective concerns, but they are outweighed by the positives, and the market shift bears that out.
 
Claims that digital distribution will result in a race to the bottom in terms of prices have been going since the inception of digital distribution. And in some cases, they may have a point (PC indie game bundles everywhere). However, in the context that GameStop's referring to (big retail games), it hasn't resulted in price falls. If anything, you can argue that DLC and microtransactions amount to a stealth price rise. Subsequently, there's more room to discount the base game. Ultimately it does strike me that this is GameStop QQing over losing business to cheaper rivals.
 

QaaQer

Member
The massive production so-called "AAAA" ones? Perhaps not, or at least reduced in number. My question though is, why should I care? There isn't a single "AAA" game in my top 10 this year -- the closest is Dark Souls 2, and I'd say that's "AA".

.

A big part of AAA/AAAA is focus group testing and mock reviewing which ensures the games target a very specific type of gamer. If you aren't part of that, there is very little in that space for you.

eg. I can enjoy AC:Unity graphics, but everything else about the game is Watch_Dogs level drek.
 

Aces&Eights

Member
Just for clarification, does anyone have the pie chat of how the 60 bucks is split up between publisher, retailer, marketing, etc?
 

Northeastmonk

Gold Member
You can buy a digital Triple A game from a legit consumer or someone willing to sell their codes elsewhere for less than walking into the store. I pay full price on the console store or on the PC service I'm using, but a deal is a deal. Most games come out and you wonder if it's worth the asking costs. I also never seek out the most expensive online deal I can find.

He's worried that retailers are selling games cheaply while his own store sells Steam cards. Steam is only cheap after time goes by. You can wait and get that $60 for much less by just simply not buying it for a month.

18j3z1b9en48ajpg.jpg


http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/02/anatomy-of-a-60-dollar-video-game.html

link from Kotaku: http://kotaku.com/5479698/what-your-60-really-buys

The games that don't do good are marked down. I remember working there and re-pricing games every other week. That's why you get a game with multiple stickers on the cover. I always pay directly. I pay the PC or console service their price and other times I'll use a coupon. The people showing it off and complaining about the game get it for free. Once a game is spoiled online; it's going to be rather difficult wanting to pay $60. I think it's a hard thing to understand and only a few people want to help the developers or the retail industry out by purchasing the game at $60. I just bought GTAV and AC:U for full price digitally and I got FC4 on a sale. I love the sales. It means I can buy more games. If I would of bought FC4 at full price then I wouldn't have that extra money to spend in 2015 on games.

Video Games are like buying a new car. Once you drive the car off the lot; it decreases in value. They need a calculator to show how much game prices decrease in days because I'm assuming time is the biggest problem. A new game is most certainly going to A. look better B. get a higher score and C. gain more interest.

I bought The Witcher 3 through GOG because they're connected to CD Projekt Red and they gave me a discount. That's an ideal situation for me. I can support the developers and receive a deal. The deals I think they're talking about is how some of us got Batman Arkham Knight already for $40 tops. It was with a coupon and a legit game seller (Greenmangaming). These guys wish a lot more people would walk into a GameStop or a retail store and pay $64.19 on a game every single time. I also doubt the heads of GameStop buy their groceries every week without a coupon either.

GameStop also sells and trades cell phones and tablets. You could sell a tablet and buy a $60 game with store credit. How is that beneficial? They're two separate industries being sold and traded side by side within one store?
 
Some games I purchase day one and have no problem paying full price, others I'm not willing to pay full price for and I'd rather skip the game entirely if it means having to buy a cheaper physical copy when I want the digital copy. If I want a digital copy of a game and I see the new Physical copy $25 cheaper , I end up not purchasing the Digital or the Physical copy.

Amazon sells Physical and Digital PS4 games. Its pretty obvious that when Amazon can deliver a brand new AAA title to your door for $25 cheaper then its digital counterpart that Sony is price fixing the digital purchases.

I can understand Sony not wanting to undercut retailers but they should be able to match them in price at a minimum.

If sony wants to force overpriced digital Games on the market then fine . I'd rather they don't make any $$ from me on the physical purchase either. I usually just skip the game entirely or I pick up a used copy on ebay.

Most of the time, when that physical copy goes on sale within the first couple months, it actually makes stores the same amount of money as a $60 sale because of price protection (i.e. they get the difference in price back from I believe the publisher). The publisher wouldn't budge the digital price in that instance because it's not really a sale on their end.
 

pachuco

Member
Gamestop is always there for the gamer and to lighten his wallet as much as possible.



I'm not saying you are wrong, but I am wondering how you came to that conclusion. Personally it seems like the "AAA is the only thing that matters" mentality has stayed stable, but perhaps I'm overlooking something.

Who has that mentality? Gamestop? Mouth breathing forum regulars?

In recent years, most consumers and video game enthusiast websites are rallying around smaller indie titles. While our desire to rally behind AAA titles has been crushed by bad publisher/developer practices (e.g. Battlefield 4 and Halo: MCC).

I think most even-keeled gamers know that there is a lot more out there than the titles that pop out at Gamestop or Walmart. We know that we have a lot more choices.
 

Dremark

Banned
Who has that mentality? Gamestop? Mouth breathing forum regulars?

In recent years, most consumers and video game enthusiast websites are rallying around smaller indie titles. While our desire to rally behind AAA titles has been crushed by bad publisher/developer practices (e.g. Battlefield 4 and Halo: MCC).

I think most even-keeled gamers know that there is a lot more out there than the titles that pop out at Gamestop or Walmart. We know that we have a lot more choices.

I was talking about retail and publishers. Yes the indie scene exists but it does so largely put of the hands of these two entities which are largely focused on AAA stuff and the existence of games that exist in between AAA and indie is getting increasingly rare.
 
Just a PSA. A gamasutra take on the same studies had a thread posted on GAF a few days ago. I thought I had subscribed to that but can't find it.

Here is my thought on the issue. Do AAA games even have a future is their average selling price is $23. Remember these games now have teams of around 1000 strong and you have ones like GTA which are basically designed to last the best part of a gen (some expansions will be made to extend their life) and ones like AC and CoD which are yesterday's news in less than a year. When you look at it like that AC and CoD are their own worst enemies and are essentially devaluing themselves and eventually the industry needs to wake up to a better model.

It is easy to paint Gamestop as "oh noes if it is $22 then they won't be able to sell it for $55 after paying $6.26 credit" and in part that exaggerated example is true (Gamestop only pay you how much your game is worth to them conservatively rounded down of course, if they have lots of a game and are unlikely to sell why should pay out the $40 credit they would have done on day 1) and it is a lot easier to blame your product than it is to blame yourself. For example, do we really need a small town to have 3 stores, there is this strange fantasy that all the customers from 2 of those stores will just vanish if you do that (I imagine some will due to shopping at a more convenient location) but as a specialist Gamestop should be relying on range of stock sold and advice (ha the only advice you get is buy pre-owned and buy the card and pre-order too) rather than price to compete.

But as for games being given out for free of PS Plus etc there is a different dynamic there of trying to get people to subscribe and keeping people subscribed.

It's an issue that requires another thread for discussion. For a medium that is progressively escalating in development resources, the fixed priced model is clearly a broken system. The only natural way to combat this is to minimize resources and emphasize "value" on game design other than "graphics" and visual flair. This whole chasing the golden goose of graphics is the AAA's greatest weakness thus far, which resulted in IAP and freemium models. Neither of which contribute to push design in the medium forward. It hampers creativity and creates stagnation.
 
Top Bottom