Help me explain how GameStop is screwing over gamers and developers alike

[Krion_Vark]

Gamestop stays atop the market because they're convenient, easy to find and well stocked with older titles that most stores don't sell.

I have actually looked for SPECIFIC used games before and they don't even carry and Used Xbox games in any Gamestop near me currently in NYC Lower Manhattan/Brooklyn area.

 

[Zombie Izzard]

1) You guys (and anyone who has worked for these companies should know the same info) pay almost exactly 10 dollars per game more than it costs the company to bring it in. Collectors editions bring in even more; They average about 20 bucks per sale.

Ex. You pay 59.99 + taxes while the Company paid ~45-50 Dollars to bring it in. Sometimes depending on the developer even less but generally nothing below 40 dollars.

2) you get 10% off "Trade ins" and 10% more on "Trade in" value if you have a subscription to Game Informer. (their Magazine) 1 year cost $19.99 (meaning you need to trade in ~10 of your own games minimum or buy ~4 used games to make up just the cost and more if you want to "benefit" from this amazing offer. (Keep in mind this is a once a month deal as the coupon comes with the magazine. Don't worry though.

3) You can just buy an Edge card and get on the Edge! $15 dollars gets you an Edge card which you can use on Used stuff for an extra 10% off (excludes consoles... obviously) and 10% more on Trade ins! WOWIE ZOWIE an extra 2 whole dollars on that brand spankin' new ame you JUST bought 5 days ago or got for a present but, don't want.

4) This is all on store credit obviously... who gives cash anymore? No one since Gamestop bought out all the competition silly goose.

I'm not going to sit her and sprout that Gamestop is evil or anything like that but, they certainly put the absolute screws to their customers and gouge the ever loving shit out of them. The Edge card and Magazine Subscription ensures that people are more than willing to trade in and buy used to "save money" when in fact they're really just lining Gamestops pockets with even more cash due to a forced shopping habit. The store credit only for trade-ins (and I remember when trading in Super NES and NES games got me CASH at Microtrends and Megapower Games) also ensures that you come back to spend the not only the money they gave you but, then some.

Do you really think Gamestop cares that you saved a whole 7 dollars making the extra 10% on that trade in and saving on the used game you bought? Think you got such an awesome deal? Well... you didn't. It cost you 8 extra dollars from the Edge card you just bought. Possibly an extra 28 Dollars including the subscription. And you just ensured that Gamestop also made ~30 dollars profit off of a game that you now possibly have no book, no case, and no codes for your DLC for.

They have set up the perfect parallel economy for lazy, uninformed, sucker consumers from which they can make literally millions of dollars from all the while under the guise of "saving" the consumer money.

Umm I don't know what Game Stop you go to but the year subscription to GI and an Edge card (now the power points card) are only 14.99 and has been for as long as I can remember.

 

[Fear of Intent]

the day i bought my 360 i went into gamestop looking for a few games i grabbed crackdown and deadrising and brought them to the counter the clerk looked my in the eyes grabbed crackdown told me it sucked and he wouldnt let me buy it then he grabbed gears of war rung it up before i could say another word and i fucking couldnt stand gears of war!!! ok story but shooters arnt my thing i wanted to be a super cop not a cog but anyway OT yes thats why gamestop sucks

 

[Lyri]

Why is it people seem to think that used games are suddenly the new blight upon the land?
People have been selling games used for a damn long time, in small chains and big chains alike. Gamestop is the biggest commercial chain for gamers and thus they are the enemy for offering a service everyone else has?

What the fuck is wrong with you people, seriously.

Game prices got hiked because of developers, so companies like Gamestop can get more wiggle room on the price of a used game.
Anybody can do it, however since gamestop are a larger company it's much safer for them to be able to do it, say rather than a small store owner who couldn't really compete with a larger chain if he over priced used.

The gripes about things like DLC and no manual also amuse me, since when has buying used ever been a guarantee you're going to get everything that comes in the box?
It never was, never has been. It all depended on the condition it was brought in. So if it had a code for DLC that you can only use once and it's been used, then that's just unfortunate but you should not have bought used.
We're all aware DLC can have this problem, so if you want the DLC from the game don't get used.

I'm also going to note that PC gamers have never been able to buy used games either, so they're forced to buy new (INB4PIRATEIT).
I loved buying used console games when I have done, I have zero gripes with the system.

None of the above is Gamestops fault, they are just using a system of sales that's been around for a while, that the industry clearly didn't take into account on both parts.
Yes, we as consumers are a little out of pocket at times but that's just how it is.

Last note: Sometimes it seems to me that people are just wanting to be stubborn and irrational about things.
This "But I'm broke and used games are my only viable way of obtaining digital entertainment" is a fine enough reason to buy used, however when the difference is at times minimal $5-10 dollars between a new & used copy then surely you could spare the extra.
That's really where I find the "I'm broke" excuse to be cutting it fine, they should not buy the game if that's the case.

 

[Kevonovitch]

So, could you give me an explanation of how GameStop is screwing over both Gamers and developers. I know how they're screwing us over, but I can't really put it into words without looking like a total prick. I only have one requirement: It has to be in only one paragraph. I'm going to be posting it in an IRC Chat, and the applet that I use doesn't let me have multiple paragraphs in a single post.

http://screwattack.com/videos/TGO-Episode-41-The-Revolution

find a way to make a convincing start, and then toss em this link

 

[Ildecia]

le-snip

pretty much what this person just said.

 

[Kevonovitch]

So, could you give me an explanation of how GameStop is screwing over both Gamers and developers. I know how they're screwing us over, but I can't really put it into words without looking like a total prick. I only have one requirement: It has to be in only one paragraph. I'm going to be posting it in an IRC Chat, and the applet that I use doesn't let me have multiple paragraphs in a single post.

http://screwattack.com/videos/TGO-Episode-41-The-Revolution

find a way to make a convincing start, and then toss em this link

I give up, it's impossible to sensibly debate people who allow someone as brain dead as Moviebob to construct their opinions for them. Moviebob doesn't have a grasp of basic econ, neither does Daniel Floyd. Why are people are deferring to them? It leaves me feeling confounded and confused.

Game Overthinker? That would imply he thinks. He doesn't think, he just bitches.

you obviously didn't watch the full thing then when he actually gets right to explaining things, besides the whole "bad gamestop grr" stuff, i'd suggest he's done his research, and isen't that far off.

 

[GeorgW]

People seem to complain about prices. But that's the developer's fault, not Gamestop's. The cost of games have simply gone up, as they've gotten more complicated. Gamestop sell the games with minimal profit margin, less than 10$. What they're doing to screw over developers are selling used games. The developers get nothing and it's all profit for Gamestop. But that's good for the gamers, so how are they screwing us over? Well, that would be pre-order exclusives.
/thread

Well, yes, but pre-order exclusives prompt us to buy new, so the developers get money.

Yes, it's good for the developers, that was kind of my point. It's either good for them or us, rearely both. It's good for the developers because since Gamestop doesn't have infinite storage pre-orders give them a good idea of how many games to order. So the more people that pre-order, the more stock is ready for non-pre-orders. It's bad for the gamers when Gamestop has an exclusive and then 5 other stores have different ones. You don't want to buy several copies, and the customer goes without something. Also, the only way Gamestop makes money is by selling used copies. It may not be fair, but it's buissness. I could go into detail, but the OP asked for 1 paragraph, and I'm way beyond that.

 

[Worgen]

actually the current price was decided by ms and sony, thats why wii games are still only 50 at most at launch

really there is nothing that gamestop is doing that is screwing over anyone, they dont give the best trade in price but what do you expect, no one who plays middleman is going to give you 50 bucks for a 60 dollar game since they dont know how long they will have to hold it and if by the time its sold its not worth less, or if they will have to ship it to other stores

I don't expect to get anywhere near full retail price when I sell a game, but getting $3-5 on a $60 game is a bit ridiculous.

they also dont give 3-5 on a 60 dollar game, no game has that much of a markdown... well maybe a yearly sports title but I doubt it, unless you wait way to long to trade it in and the sales price of the game is way down from 60 bucks, the price they give is based on demand and it falls as the price of the game falls

 

[cefm]

Quite the opposite - Gamestop provides an essential function that benefits all involved.

It's the GAMERS who are screwing over the developers by buying flashy expensive shit instead of insisting on quality games. And the developers turn right around and screw the gamers back by producing flashy expensive shit and then complain about piracy stealing their money when they really should have just been producing FUN GAMES.

 

[The Arbiter of Cool]

To all those that seem to have a considerable amount of (unwarranted) disdain for Gamestop; a question:

Have you, as consumers, ever been forced into doing business with Gamestop? Has anyone you know ever been forced into doing business with Gamestop?

No? Then, how again is Gamestop screwing anyone?

 

[JeanLuc761]

Quite the opposite - Gamestop provides an essential function that benefits all involved.

It's the GAMERS who are screwing over the developers by buying flashy expensive shit instead of insisting on quality games. And the developers turn right around and screw the gamers back by producing flashy expensive shit and then complain about piracy stealing their money when they really should have just been producing FUN GAMES.

To all those that seem to have a considerable amount of (unwarranted) disdain for Gamestop; a question:

Have you, as consumers, ever been forced into doing business with Gamestop? Has anyone you know ever been forced into doing business with Gamestop?

No? Then, how again is Gamestop screwing anyone?

These two summed up what I was going to say. Well done.

 

[Gindil]

This pro-dev nonsense leads to insanity when taken to the extreme. To think that buying used is the same as piracy is lunacy.

Remember: When they sell a used title to you under the pretense of "lower price" it's only lower IN COMPARISON TO GAMESTOP. Though expect those prices to become more relevant as more of Gamestop's dwindling competition get bought out or collapse because apart from major box-stores Gamestop will soon be the ONLY business in town.

Case in point, they have already torpedoed no fewer than 6 individual stores/chains in my local market. Every one of those locations was bought out and converted into a Gamestop within a year of their failure. To me, if that isn't proof of a hostile takeover, I don't know what is. Until the local Gamecrazy went under, I think there were a whopping TWO non-gamestop stores left in a city of 100,000.

The only say Developers have in this is a yes or no proposition at this point (just like the consumer). Infinity Ward walked out of a lucrative contract due to legal issues regarding (allegedly) royalty payments from Modern Warfare 2. Usually, under-performing developers get canned long before ever reaching that point.

The fact that the publisher was able to legally send armed goons to their office speaks volumes of the sort of business these developers face.

I admit that even without the Used Game Market, the sales still go to the Publisher first and the developers second; but that's the thing. Publishers, by their very nature have ALWAYS been part of distribution while the two originating forces of supply and demand (the developer and the gamer) have been the ones getting fucked by these middlemen.

So to me, blindly supporting either the Publisher or Retailers (while discrediting the other) is stupid, because in an ideal market they wouldn't exist. While we can never feasibly be rid of the publishers, we should at least be moving as close as we can towards that ideal, no?

Regarding the first part and the failures of the other stores, I'm sure there could be other niches that those game places could have tried out. And example would be the Game Over store in Las Vegas. It was competing right next to a Gamestop and people loved playing there instead of GS. There's a few things that they did that I noticed. They had a lot of import game items that were quite rare. They played a number of games, and they had financial backers who allowed them to expand in other areas. And the central location was right next to a Yoshinoya (import Japanese meat bowl restaurant) among other things. They had tournaments, they traveled a lot, and they loved to play games as well. But the best thing about them was the fact that they always connected with the people that came in to find good games and new opportunities.

In regards to opportunities, the digital market has grown a LOT with the advent of Steam. Even though Steam is a publisher it's amazing that so many people have made money with Valve's distribution. Let's also not forget all of the people that are better off with XBL and even *shudder* PSN. You can't discount that retailers are PISSED about digital distribution. But trust me, most monopolies eventually fall when they fail to adapt. That's the aim of the game.

 

[Atmos Duality]

Regarding the first part and the failures of the other stores, I'm sure there could be other niches that those game places could have tried out. And example would be the Game Over store in Las Vegas. It was competing right next to a Gamestop and people loved playing there instead of GS. There's a few things that they did that I noticed. They had a lot of import game items that were quite rare. They played a number of games, and they had financial backers who allowed them to expand in other areas. And the central location was right next to a Yoshinoya (import Japanese meat bowl restaurant) among other things. They had tournaments, they traveled a lot, and they loved to play games as well. But the best thing about them was the fact that they always connected with the people that came in to find good games and new opportunities.

We had two stores like that in my city. One was the chain Babbage's, who specialized in carrying rare/used games (later turned into Gamestop), the other was Media Play, who got bought out by Best Buy and then closed (why compete when you can buy them out instead?) despite doing amazingly well.

Media Play had an ENORMOUS import lineup years before Best Buy did. For games, manga, anime (blegh..not for me though), old PC games, you name it. They also held regular Smash Bros Melee and DDR tournaments between hours. Good stuff.

Naturally, it poofed as soon as Best Buy bought them out. I thought they would have kept their rare stocks, but I guess it got sold off elsewhere.

In regards to opportunities, the digital market has grown a LOT with the advent of Steam. Even though Steam is a publisher it's amazing that so many people have made money with Valve's distribution. Let's also not forget all of the people that are better off with XBL and even *shudder* PSN. You can't discount that retailers are PISSED about digital distribution. But trust me, most monopolies eventually fall when they fail to adapt. That's the aim of the game.

I'm terrified of Publishers sidestepping the service providers entirely in the far future.

Sony tried pulling this shit with PSN, and they ended up charging Gamestop prices despite having no need to do so (they became the retailer). So instead of under-cutting their competition (which almost guaranteed to be the most effective way of doing business; so sayeth Wal-Mart) they gouged.

Why did I buy Monster Hunter Freedom Unite on PSN for 35 bucks when I could have bought it "used" at Gamestop for 30 instead?
Cutting the retail markup out, they could have easily sold it for 25 or 20 instead and still turned a profit.

However, Steam (and others like GoG and Direct2Drive) seem to be the proverbial "White Knight" who has arrived to save us. I'm wondering how long the benevolence will last though; with success inevitably comes greed.

 

[LogicNProportion]

The unnecessarily high game prices. 5 years ago it was 50 bucks per game now its 60. The amount of "hardcore gamer" employees who will make fun of you because you are not buying some mega tbs game. These reasons hurt developers more because of the high prices i wont buy a game unless i know i will like it, and i will buy somewhere else or not at all because of the employees.

Based on inflation data, games and their respective hardware are actually doing very well compared to just about everything else, even compared to other medias. I understand your other two points, and while price inflation at any range is bad for us, we have to know that's it's not as bad as it could be.

Personally, I like Gamestop. I get to get out, spend a bit of time talking to some people I know, I get discounts on games for being such a likable fella P), and I LOVE their pre-order bonuses and swag. I can not see myself playing Clock Tower or Solitaire with any other playing cards than my Fable 3 deck.

Plus, I'll take a store and tangible goods than digital media (no matter how easy it is) any day.

 

[Sky Captanio]

I walk in, pay money and get a game. Seems fine to me.

 

[Bedewyr]

Umm I don't know what Game Stop you go to but the year subscription to GI and an Edge card (now the power points card) are only 14.99 and has been for as long as I can remember.

The Edge card comes with a free subscription AFAIK and it's 15 Dollars like I said... 14.99 = 15 dollars. It's a penny.

The GI subscription I remember used to be offered by itself for 19.99 or... 20 bucks for a year. Maybe they don't offer the subscription by itself anymore.

The fact of the matter is I don't shop at Gamestop. I buy my games either from Kajiji or other local used market where I get everything for fractions of the price because I'm neither stupid enough nor lazy enough to think saving 5 dollars is such an amazing deal, especially with Day 1 DLC costing upwards of 10 dollars anyways. You don't ave anything buying the used copies.

Edit: Or I buy them new, I don't like paying 5 dollars less or anything from a used game store only to find out I'm getting like 50% of what I paid for.

ie. no book, no DLC codes, used game, etc.