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GameStop stock price takes large hit after Xbox Digital Game Pass Announcement

N.Domixis

Banned
Sony should be the one sweating. A service like that sounds awesome. And no PSNow doesn't count, not at those prices at streaming only.
Lmao here we go again. If this is in any way a threat I wouldn't be surprised if Sony did it too. All they would need to do is offer a download option instead of a stream only psnow
 
They had a digital store front. I think they still do in congregate. Do they try to promote it? Not one bit, so much so that I'm not sure it exists anymore lol.

Haha, yeah... they don't even have a support or contact section on their website. They cancelled a Nintendo Classic order I made randomly around Christmas, and had a link in the email of "If this was cancelled by mistake, please visit our contact page for support," and there was no link. So I went to the Gamestop website and for the life of me found no contact information anywhere other than a robo-phone number with no human support. On the phone you had to enter your order email address, which they had no record of.

I've got to imagine it's the worst consumer business in America behind like... Cash4Gold or Trump University
 

Mihos

Gold Member
Sadly only a the PC market seems to understand the positives of digital only.

I worry about physical dying for Xbox, PlayStation, and Nintendo, as it would lead to a lack of competition, whereas Steam and other services compete.

multiple hardware vendors, multiple storefronts, and multiple ways to install, and insane amount of backward compatibility keep digital on PC honest... lacking true multiple OS options is the only real Achilles heel.

Console digital only is as if you have a video player, that only plays Pixar movies, that you can only buy directly from Pixar, and requires a subscription if you want the bonus features.
Want to watch a Marvel movie? Different hardware, different vendor, and a second subscription.... and next years Marvel/Pixar player can't play the movies you have now..
 

Chris1

Member
Then they'll lose sales from Walmart, Amazon, best buy carrying those products.

That didn't stop them saying they wouldn't buy a console that doesn't play used games prior to the XB1 reveal though.

Also, with Xbox game pass that means Gamestop is either gonna have to far offer less for trade-ins to compete, severely limit or stop buying used xbox games all together so their used game business is gonna take a big hit regardless. Would losing out on new sales which they don't make too much on be really that bad when it'd Scare Sony and Nintendo into avoiding doing the same?

This is a real possibility. The only thing that will stop them from doing so would be the idea that they would be helping out their competitors. Furthermore, their revenue would definitely take a hit. The question I guess would be who blinks first.

True, they would lose even more money but they're gonna take a big hit anyways. Would taking a little bit of a bigger hit be worth it to send a message to Sony and Nintendo to back off and somewhat salvage what's left of the company? I think it would but I'm obviously no business man :p

Or should they just suck it up and accept it, then what if Nintendo and Sony follows suit? Gamestop is well and truly fucked at that point.
 
Lmao here we go again. If this is in any way a threat I wouldn't be surprised if Sony did it too. All they would need to do is offer a download option instead of a stream only psnow

People keep forgetting that the streaming is required because of the ps3 servers that are needed to run the games. I'm almost positive that Sony will have something similar to this eventually for games that are easier to render
 
What's gonna happen if Gamestop just says "fuck it, we won't stock your software or hardware any more" now though ?

Physical is still the majority and MS needs Gamestop to sell Xbox's. Don't you think trying to force all digital is a bit risky right now? MS has a lot to lose here if Gamestop fights back.

Gamestop stopped stocking hardware with digital games bundled, who's to say they don't just stop stocking Xbox period?

Amazon, Best Buy, Walmart, Target, and every other store that sells video games will reap the rewards.
 

shandy706

Member
People need to realize we're headed for a digital future even if Microsoft closed all their doors tomorrow.

Most brick and mortar stores are disappearing. Only the "convenience" stores will last for a while.

Whether one finds that good/bad or it makes you happy/sad...it's probably where we'll be in 30+- years.


Number of years pulled from butt
 

krang

Member
This is a real possibility. The only thing that will stop them from doing so would be the idea that they would be helping out their competitors. Furthermore, their revenue would definitely take a hit. The question I guess would be who blinks first.

That they'd just be killing another revenue stream is probably a bigger reason not to. As my post above - cutting off nose to spite face.
 
It wasn't digital sales that truly killed the physical media market, but Netflix and Spotify. From the consumer's perspective, you can't beat them on price.

Yes, it's the physical retailers who take the first hit, but I'd worry a lot more about the long-term impact on developers. Subscription services are the natural endpoint of the buy-and-return economy, and the one thing that might keep the latter alive is if there is a significant delay in the release window for subscription content, since games still benefit from a strong pre-order/day-one culture. But if the incentives to pay full price for day-one ownership (physical or digital) disappear, we may be on the way to a crash.
 

kswiston

Member
This just strikes me as blind reaction to news as is often the case in the stock market. Netflix-style access to the same 2-3 year old games littering every bargain gaming bin in the country is not going to be a huge game changer that craters Gamestop's business. Gamestop's business these days is basically selling gaming accessories/swag, and offering a $20-25 rental service on new release for lower income/young gamers via trade-ins.
 
To Gamestop's credit, they've somehow survived and thrived in the last 15 years, despite being the most consumer hostile store that I can think of, and numerous threats from WalMart, Target, Best Buy, Amazon, Ebay, Craigslist, Steam, XBL, and PSN.

It's marvel that they still exist and have mostly thrived, so they must have some business sense. Although I hope that in 5 years time they are kicking themselves for not trying to use their capital to invest in a digital service... Using their brand recognition and market value to introduce a console streaming competitor, partnering with a streaming service.

In a way I have to agree. No other local store specializing in video games in my area has been able to survive longer than two years tops before closing shop. It's because of their sharky bullshit that I don't go to them unless absolutely necessary, but clearly looking at the other examples of gaming stores in my area, it's clear that sharky bullshit is the only reason they're still standing.

And shit, the anecdote I usually hear is that asking for a small business loan to start a gaming store is the easiest way to get your ass laughed out of the bank in record time due to gaming stores being considered to be among the most risky retail ventures with high rates of failure.
 
Say what you want about Gamestop but I will be walking in there shortly before midnight on Thursday and walking out with my Switch. I'm not worried about when it ships or if it does. I also got 50% extra towards a trade today since it went to a Switch game. That ended up being $20 extra.

I sound like a shill but they are ok if you take advantage of the right deals. It also helps that the manager there is cool as hell.
 

Raven77

Member
A digital only future is not good for gaming.

I understand the convenience, but imho digital should be far cheaper msrp than physical.

Well if you understand anything about production, printing, shipping, retail markets, etc. you would know that you are EXACTLY right (maybe you do know about these things).

Sure digital software has technical components but the cost of this background infrastructure is tiny compared to the cost of creating and delivering a physical game to a store front, not even factoring in what they have to pay Target or Gamestop etc. when the game sells there.

This is the primary reason I refuse to go digital unless it is a big discount or an indie game that has no physical release. Once they start passing at least SOME of those savings along to the consumer, then I will jump into our all digital future.
 

x-Lundz-x

Member
Gamestop is the walking dead. So is Gamefly.

Yuuup. Feel bad for the employees when they both finally crash down.

Lmao here we go again. If this is in any way a threat I wouldn't be surprised if Sony did it too. All they would need to do is offer a download option instead of a stream only psnow

Streaming for PS3 titles, download for PS4 games. Problem solved and it would instantly make PSNow even more attractive.
 
So I used to go to GameStop almost exclusively but starting about 5 years ago that slowly started to change because of Amazon Prime. Once Amazon started offering a discount on new games purchased during their launch week I found myself going to GameStop far less. I recently preordered a Switch through BestBuy, got a GamersClub Unlocked account because a Visa Checkout discount at that time stacked with the GCU discount resulting in me preordering a bunch of Switch stuff through BestBuy. Basically, getting the GCU account kind of put the final nail in GameStop's coffin for me personally.
 

rhandino

Banned
Stock also fell when Ea Access was announced but it recovered and later Gamestop started to sell EA Access subscriptions... yeah.


Publishers are going to start moving over to this exact model imo. I fully expect you will see at least a Ubi Access sometime over the course of the next 3-5 years imo.
Another 3? People were alredy saying this in 2014 when the program launched and again when EA announced that the program was a success in 2015.

For some publishers it would make sense to take this route, I guess, but for others? I dont really think so tbh
 

QaaQer

Member
They are. Flash Sales, Pre-loads, digital storefront's blowing up, F2P games growing, MMO's and Service Based games finding strong footings, the actual architecture and components of the systems themselves. strong online App support like Internet Browsers, Netflix, Hulu, Amazon, etc.

Consoles are more like PC's than at any other point in the history of the industry.

Computer appliances differ from general-purpose computers such as a desktop computer in that they are not designed to be modified by the end user. functionality is 'sealed in' at the factory in some way.

That has not changed because of flash sales and Netflix.
 

shingi70

Banned
That didn't stop them saying they wouldn't buy a console that doesn't play used games prior to the XB1 reveal though.

Also, with Xbox game pass that means Gamestop is either gonna have to far offer less for trade-ins to compete, severely limit or stop buying used xbox games all together so their used game business is gonna take a big hit regardless. Would losing out on new sales which they don't make too much on be really that bad when it'd Scare Sony and Nintendo into avoiding doing the same?



True, they would lose even more money but they're gonna take a big hit anyways. Would taking a little bit of a bigger hit be worth it to send a message to Sony and Nintendo to back off and somewhat salvage what's left of the company? I think it would but I'm obviously no business man :p

Or should they just suck it up and accept it, then what if Nintendo and Sony follows suit? Gamestop is well and truly fucked at that point.

They're stuck between a rock and a hard place right now.


EA Access has been pretty profitable for them, and iwere only going to see more from here.
 
Gamestop isn't doing as well as they used to, but where does the narrative of them being "gone soon" come from? They've already started transitioning into other revenue streams to make up for lost profit. That's why they offer a ton of gaming/nerd merchandise and have a games publishing division

Yeah this could all just be another case of gamers online running with a narrative they're dead wrong about. Like consoles disappearing.
 

kswiston

Member
GameStop will sell Xbox Digital Game Pass subs.

Not only that, but this service doesn't even cover the sort of big titles that they make most of their money selling and re-selling.

Based on the titles in the promo image, the Digital Game Pass is going to be where pubs throw their titles when they are at the tail end of their sales model. Those titles are already rotting in 2 for $10 Gamestop clearance bins.
 

Trup1aya

Member
It wasn't digital sales that truly killed the physical media market, but Netflix and Spotify. From the consumer's perspective, you can't beat them on price.

Yes, it's the physical retailers who take the first hit, but I'd worry a lot more about the long-term impact on developers. Subscription services are the natural endpoint of the buy-and-return economy, and the one thing that might keep the latter alive is if there is a significant delay in the release window for subscription content, since games still benefit from a strong pre-order/day-one culture. But if the incentives to pay full price for day-one ownership (physical or digital) disappear, we may be on the way to a crash.

I disagree with the assessment that this puts devs at risk.

Even if there was a reduction in day one demand 1) this model doesn't replicate the benefits of ownership. That's why MS is so keen to note that Pass titles will be sold at a discount 2) for pubs/devs the margins on a digital sale are much hire than a physical one - nearly double

Things like this will only help their bottom lines as it extends the life of titles, boosts dlc sales, and symphons revenue away from 2nd hand sales.
 
Not only that, but this service doesn't even cover the sort of big titles that they make most of their money selling and re-selling.

Based on the titles in the promo image, the Digital Game Pass is going to be where pubs throw their titles when they are at the tail end of their sales model.

Most of GameStop's used games are old games though. That does indeed cut into their business and if MS treats this service like BC the list is gonna keep growing.
 

Teran

Member
multiple hardware vendors, multiple storefronts, and multiple ways to install, and insane amount of backward compatibility keep digital on PC honest... lacking true multiple OS options is the only real Achilles heel.

Console digital only is as if you have a video player, that only plays Pixar movies, that you can only buy directly from Pixar, and requires a subscription if you want the bonus features.
Want to watch a Marvel movie? Different hardware, different vendor, and a second subscription.... and next years Marvel/Pixar player can't play the movies you have now..

My man with the truth right here.

PC is an open platform, and ultimately the community can hold onto things that publishers arbitrarily decide you no longer have the rights to "own". A closed off platform where the publishers/console manufacturer have complete control over what you "own", which devices you can own them on, and whether or not that software still has the right to exist is a nightmarish proposition.

Seeing the general positive sentiment towards the all digital console has massively reduced my disdain for the likes of EA/Ubi, it's a consumer base that welcomes potential fuckery with open arms. Keep all digital on PC where it belongs. This is even with the fact that I like the actual Xbox service's premise, just not where I know it's planning to go.
 

Fisty

Member
For all those celebrating, GameStop is the one company that was fighting like hell against the original Xbox One announcement. GameStop is the only reason that initiative died as quickly as it did.

Nah, Gamestop was one of the very few used retailers that would have been able to use Microsoft's ridiculous reselling procedure. Gamestop could have practically monopolized the XB1 used market with Amazon and maybe Best Buy jumping in too. Mom n Pops and ebayers would have been the ones that were fucked, not Gamestop
 

kswiston

Member
Most of GameStop's used games are old games though. That does indeed cut into their business and if MS treats this service like BC the list is gonna keep growing.

Anything still making significant money via digital or new physical sales isn't going to be on this service.

I suppose this might end up taking in some of those customers that only shop the 4/$20, 2/$20, etc sales that Gamestop has on really old stuff. I figured that those were in the minority of Gamestop's business, even if their shelves have a lot of those titles. Anything that as popular presumably sells on a regular basis, even if it's used. I might be wrong.

I won't shed a tear if/when Gamestop tanks. Best buy and Target sell discs and their employees aren't annoying pushy assholes.

Best Buy is only a viable alternative if you mainly play AAA games. If you want anything niche, it's going to be really hit or miss.
 

Kthulhu

Member
All the shitting on Gamestop yet people don't realize just how important they are for advertisement to people who don't use services...

Yeah, a lot of Americans don't have access to high-speed Internet, meaning an all digital future, or even a mostly digital future would seriously impact their hobby.
 
Not a surprise, the standard game market as we know it is slowly fading away. 10 years from now I honestly wouldn't be surprised if big chain gaming stores have transitioned fully across to being about gaming culture instead, selling t-shirts and gaming keyboards and collector's edition gear while running tournaments and such.
 

Trup1aya

Member
My man with the truth right here.

PC is an open platform, and ultimately the community can hold onto things that publishers arbitrarily decide you no longer have the rights to "own". A closed off platform where the publishers/console manufacturer have complete control over what you "own", which devices you can own them on, and whether or not that software still has the right to exist is a nightmarish proposition.

Seeing the general positive sentiment towards the all digital console has massively reduced my disdain for the likes of EA/Ubi, it's a consumer base that welcomes potential fuckery with open arms. Keep all digital on PC where it belongs. This is even with the fact that I like the actual Xbox service's premise, just not where I know it's planning to go.

You're sweating over 'potential fuckery'. Valid concern, but let's not pretend to you actually know where it's going. You just have a fear that it will go there.

Meanwhile I can play Xbox 360 games I bought 10 years ago on my Xbox one right now. So while they COULD strip it all away in some draconian power move, all signs actually point to an attempt to offer services thar benefit themselves and the consumer at the same time. This is yet another example of that.
 
I respectfully disagree.

I don't know about you but I haven't bought a bluray since I got netflix.

I'm not talking about used game sales. Just game sales in general.

(I don't buy used games)

You said publishers wouldn't like this. I'm saying they would, because this way they get some return from subscriptions compared to the $0 they get now from used.

What do Blu-Rays have to do with anything?

Nah, Gamestop was one of the very few used retailers that would have been able to use Microsoft's ridiculous reselling procedure. Gamestop could have practically monopolized the XB1 used market with Amazon and maybe Best Buy jumping in too. Mom n Pops and ebayers would have been the ones that were fucked, not Gamestop

That's not how it went.
 

Fisty

Member
You're sweating over 'potential fuckery'. Valid concern, but let's not pretend to you actually know where it's going. You just have a fear that it will go there.

Meanwhile I can play Xbox 360 games I bought 10 years ago on my Xbox one right now. So while they COULD strip it all away in some draconian power move, all signs actually point to an attempt to offer services thar benefit themselves and the consumer at the same time. This is yet another example of that.

And even if they did strip everything away from people, 7th gen is cracked wide open with everything available on the morally-grey side of the internet. And one day 8th gen will be too, so if they dont do the obvious thing and keep selling backwards compatible 8th gen titles for the next 30 years, you can just download custom firmware and enjoy those same games.

That's not how it went.

So tell us how it did go, Major
 

Teran

Member
You just have a fear that it will go there.

To be fair, they literally unveiled Xbox One as a DRM machine. When it comes to Nintendo, people generally fear the worst based off their track record. This is for good reason, a pattern of behaviour tends to be indicative of future moves. AAA publishers and MS have been salivating at the prospect for ages; a complete lack of end user control.
 

a916

Member
Sony should be the one sweating. A service like that sounds awesome. And no PSNow doesn't count, not at those prices at streaming only.

Sitting comfortable in first place so no they probably won't....

That said, as a PS4 user, they should adopt something similar
 

Nyoro SF

Member
Gamestop is also a huge reason why physical games are still sold. They make up a huge chunk of the physical retail market. If you love your game boxes like I do, you should not be cheering their loss.

I go digital on PC because I don't have a choice, but I like that I have the choice for physical for console and opt for it whenever I can. Even if it means I have to deal with Gamestop's silliness every now and then (I mostly use Amazon). I would never cheer for GS's demise in that case.
 

Trup1aya

Member
To be fair, they literally unveiled Xbox One as a DRM machine. When it comes to Nintendo, people generally fear the worst based off their track record. This is for good reason, a pattern of behaviour tends to be indicative of future moves. AAA publishers and MS have been salivating at the prospect for ages; a complete lack of end user control.

First of all, it's a console, it's inherently a DRM machine. You can't buy an Xbox game without MS getting a cut.

With that said, Ive mentioned the concern is Valid. but all signs since then has been counter to the behavior exhibited at launch. You can buy physical, you can buy digital. You can rent physical. And now you can rent digital. And it's all a choice, and MS profits no matter which choice you make.

There's no need to enact more control, when you are making money by offering things people actually want, in the manner they want them. on the console side of things, MS services have been exhibiting an understanding of that concept.

You are choosing to ignore the most recent pattern of behavior, because of the fear instilled in your from their previous behavior.
 

PMS341

Member
I agree. GameStop is a major part of the game business. Like it or not.

As someone who managed a store for nearly 8 years, I'm not certain if Gamestop needs to have the importance it does. There is definitely an echochamber of "they need us" when it comes to the higher-ups. We'll see.
 

greelay

Member
The only time I have been into gamestop over the past five years or so is to do the buy a used game and return within seven days thing. And I have only done that a few times, best buy and amazon are such better deals.
 

Ambient80

Member
Gamestop to become Hot Topic for Nerds comfirmed. Good thing they got in on that pop-culture-garbage-toys game

That's what came to my mind immediately. Last time I was in one the store was packed with shirts and toys/figures. Basically a shit load of not-games jammed into the middle of the store, and games (almost exclusively pre-owned) lining the walls.
 
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