Video games are having the comicbook problems, at least on consoles. Too many people taking 'their cut' and something has to give. Most people think publishers will become obsolete but in the end I think shelf space for games in stores will go away especially with most kids buying digitally than physically. I know there are gamers that love their physical games but I think stores charge too much for shelve space. I wonder how much online shops charge.
If publishers want to survive they will need to start thinking of new ways to deliver their content to player and so far digital has been the best bet. Personally think publishers should just work together and make an amazon of games and charge 10% fee on goods to keep the place running and have some exclusives thrown in with games bought there to move them away from Gamestops. They can even do a GOOD online trade in program and have actual publishers make money off of used games instead of Gamestop.
But hey, that's probably too hard so let's just fuck over the consumer with DLC, microtrancations and rushed/shitty games. That's how the industry will survive.
I feel like we overestimate the amount of people who buy online as opposed to wanting to buy in store. Retailers are still very important, especially for big releases. Not only that, but it allows games to have their 'presence' in the real world, whereas it's easier to lose it in the online world sometimes.
Online stores usually charge a percentage of the gross sale? I'm not 100% on that, but that's my understanding. Retailers will pay the amount up front for the stock, then charge for markdowns/promotions etc.
It's unlikely competing publishers will ever work together to form an online retailer, but they are all doing their own thing (Origin, uPlay etc). Or they just go to where the consumers are, currently Steam and GOG.
I think people vilify used games too much. If people are buying used, give them a reason not to rather than trying to black-ball it, because it just won't work.
Don't forget annual releases in the same month with always the same input or a sequel, oversaturation and overhyped stuff, rushed development and many delays.
VG Stores this day are 20% games, 20% publicity and 60% toys from Skylanders to Amiibos. I think I see something very interesting here with all the sign off of the CEOs and Co. of many big stores.
Gamestop is moving to more merchandise (clothing, toys, etc) because the margin in games is paper thin. In some countries it's quite often sold at a loss. Back in the glory days of PS2 and Wii, you could make up for that with sheer volume, but right now they need to re-adjust their focus. Look at how much Walmart and the other mass retailers are shrinking their gaming sections as well.
Also, Gamestop is very... badly run. I personally can't wait for it to tank.
I think hardcore gamers bash Gamestop a lot, but at least in Australia EBGames does a very good job being a specialist retailer. Anyone who can be the best sellers AND the most expensive is doing something very right.
Is Gamestop really that bad? I heard they also sell used games in store.
I feel like the terrible Gamestop thing is an American phenomena. EB Games in Australia is expensive but generally very good in terms of range and service. They are expensive but will price match anyone else if you ask, the staff I've always seen have been very friendly and willing to help out.
Selling used games is something they do better than anyone, it's a huge market for them and many other retailers have started selling used games too.
Wow, it looks like selling used games is also part of why they're still doing their business, may be it gave them more profits than selling new games. Who knows.
George is right their trade in value is bad, but we forget how many bums are gamers. People will trade in a game at 30% of what they paid for it to get a small discount. Personally I would never bother because the trade in rates are so poor, but a LOT of people do it.
I'm almost certain they make more margin on used games than new, and not only that, but it's something that sets them apart from places like Walmart and the like.
Yeah, its basically where they get a lot of the profits. The issue is that means that publishers loose money. They tried to combat this with 'free day one DLC', brand new games having codes to unlock multiplayer and then season passes (the idea is you promise all this content, user pays up front, publisher makes more money + doesn't sell their copy to gamestop) but it seems that they are continuing to fuck over the consumer with not only seasons pass DLC, but extra DLC outside of that with Microtransactions (see Evolve).
Just bad business all around there. The only way to combat this is to control distribution. Now we have PC, while sales are high they are still missing a market of pirates... so it means games have to be cheap for most PC users to buy them (or they make vague rules like they pirate single player only games).
The issue is both of these markets have smart consumers that value their dollar (buying used or with deals at Gamestop or pirating/buying super cheap on PC) while you have mobile that are made up of casuals that don't flinch when they waste 30 dollars a month on Castle Crashers.
I think people buy used because they don't see the value in buying new games anymore. Is the Day One DLC worth the $20 you'll save buying it used for example? I think the best and only real way to stop it is for publishers to really re-evaluate their pricing and percieved value. Anything else is just fucking over the consumers.
ALSO:
I tried to play Chain Chronicle on the bus on the way home last night but it wouldn't let me play until I signed into a network, so I gave up and forgot about it by the time I got home.
