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[tehrik-e-insaaf]

So as the topic suggests, this thread is designed to engage people in a discussion about the future of specialty retail. Since there are (I'm sure) many of you on this board that work in a Gamestop or an EB or something, feel free to chime in with insightful comments.

Basically as I see it: Both EB and Gamestop (which are now in the process of merging) are pretty screwed next generation if they continue with their current model. The pull these stores once had is slowly diminishing as the Wal Marts and Best Buys of the world continue to expand, buying games from Amazon and the like is easier and more acceptable to the average person, and online delivery of games pulls away the dollars of the hardcore gaming community.

Really the one thing that these shops have is the purchase/resale of used games for which they get very high margins. That is becoming more difficult as eBay is becoming more accepted in the mainstream and the dollar spend on high-priced new games is going down (people will spend 20 bucks and purchase a new greatest hits title rather than buy a used newer game for 35-40)

So what is the future of these retailers? Do they have one? Will they end up being like card shops and comic book stores are today? Run by independent people in a select few areas? What is the value proposition of going out of your way to pay more for a video game?

 

[heavy liquid]

There was a good discussion here:

http://www.ga-forum.com/showthread.php?t=57215

About this article:

http://www.gamerswithjobs.com/node/17063

Basically they no longer care about the "hardcore gamer" and they're going to focus even more on used games and systems, as that's where the money's at.

And what can you expect? To put it simply, more preowned, less value for your trades, more reservations with more tightly controlled allocations, and the expansion of profit generating promotions.

In short, the things that are slowly turning the traditional gamer away from specialty retail is exactly of what you can expect more. The slow separation between gamer and gaming store – as incongruous as that may seem – will only accelerate. Informed and savvy gamers make as difficult a customer as they do employee. They are far less likely to preorder, or participate in the profit generating promotions that these companies increasingly rely on, and thus they demand far too much effort for far too little profit. With the steady mainstreaming of gaming, there’s no need to struggle for the dollars of the traditional gamer.

 

[Doc Savage]

It is not going to affect them at all with the next generation. The merger between the two companies is forming an even larger company, when the merger is done the new company will be a fortune 500 company and from what I have heard there aren't too many retailers that are listed as such. The buying power this merger is going to open up will be a huge benefit. Both companies have been consistently opening new stores and don't show signs of slowing down. The other stores you mentioned Wal-mart, Best Buy, Target don't take trades and that is huge business. As long as people keep buying games people are going to want to get rid of them and it is alot easier to walk down to your local store hand a game over get credit/cash then it is to take the same game and list it on ebay wait for auction to end wait for payment and wait to be sure the other party recieved it.

All the retailers should benefit from the next gen tremendously. It is the following generation in like another 5-7 years where you might see the retailers cut out of the picture when broadband penetrates the rest of the country/world and developers/publishers offer their games as downloads via xbox live/ steam and stuff like that. That is pure profit to them, no middle man taking a slice of the pie.

 

[Musashi Wins!]

While I'd like some of your criticisms of their business failings come true and force them to react more to the dedicated consumer....I think a lot of their stores are making massive profits and their retail sites are expanding. So...I'm not sure those explanations really hold water.

 

[EclipseGST]

from what i heard...dunno if its concrete though is Best Buy is setting up a trade in concept for games/music/dvds. I believe a couple stores in some select test markets have this set up . But also i've heard it's bombing...oh well.