This may explain why used games are going for $55 at GME.
You don't hear anyone talking about this & we all know they know its going on.
PS2 era is at its end
WII & DS are headed for digital distribution
360 games are being downloaded and burned
PS3...no wonder they are now supporting SONY
The obvious solution to this is to distribute all games digitally.
GME will not be around in 3yrs. What an opportunity to get rich, I will short this pig down to $0
Okay, I'm ready for your attacks!...lol
You may or may not absolutely right.
I wonder how they plan to battle or participate in the future direct downloading of video games? The brick and mortar model they have now works because there is no direct downloading but once this kicks in next year or 2011 (theres a compnay that is doing this, cant remember the name) they will face extreme downward pressures.
Amazon will most likely create heavy competition since they are offering a slight premiums to trade in games (since they are building their inventories) and the fact that if you trade in a game you get amazon money and you can buy anything on the website not just video games! Of course theres the issue of instant gratification that GME provides when core gamers walk in and out with games instead of making and waiting for shippments.
No exiting new games for the summer except maybe Bionic Commando. Street fighter IV is done and Resident Evil 5 is a big disappointment. But since the consoles have reached a stage of maturity maybe games will take greater advantage of the technology the consoles offer and release something innovative (maybe the EA Active).
I wouldnt short the stock just yet I would wait for a couple more quaters and see what the CEO says about the future.
Thank God there's was another intelligent person on Yahoo MB ;)
Amazon poses a SERIOUS threat and they have the money to wipe GME out.
I also like how you point out games like SFIV. Lets use this game as an example.
Retail is 59.99 like all other games, but Capcom has been making a killing selling downloadable licenses to unlock costumes at 3.99 for 5 characters. Those who bought costumes for all characters, which there are, paid an extra $20 totaling $79.99. How much has GME profited from the extra $20? Nada! Off course developers & publishers love this and will build on this trend.
Also, online gameplay increases replay value significantly right? this forces more people to buy new copies because used copies become harder to find which is bad for GME. Probably another reason for $55 used games.
GME is done for, I can't understand anyone owning this stock. If you like games that much, go buy the publishers afterall they make the games not the retailer. GME is just a retailer first before anything else, and it's affected by any threats to the industry which includes shopping online and downloading.
Funny thing is that the execs have admitted as much and are looking for some kind of deal to strike with someone, Anyone! They are desperate & dumping their shares on you!
All this from a guy who thought Sony was going to stomp earnings....
What a joke...
Have ever modded xbox 360 or ps2? You are idiot if you think that good reason short GME.
Also have you tried wrap digital download as present? Not too easy. Also America one worst countries at adopting new technologies. It will much longer then 3 year before main medium for games changes.
We already do it with mini games like Tetris and Bomberman. The groundwork is set up, all that is left is to build the structure. The systems will probably require massive storage capabilities but memory becomes cheaper and cheaper. I got a Terabyte hardrive for my PC for under $200. The PS3 has USB ports. My head is spinning with the easiness of downloading games ;-)
I disagree with the fact. First the excuse people use is we are backing up the game, but it is mostly piracy.
On the other hand though it gets you more into games and you buy stuff you never thought you would buy like a guitar, street fighter joystick, 120GB hard drive, wireless Ethernet, more controllers etc etc. I am not saying I do this, but there is a residual effect even in the piracy market that never gets realized. Once people get hooked on the games it is almost like a drug and they buy the next cool gadget.
Or think about it this way. If you mod your box to the 1.51 version and trick it out you will spend more time and money on it. Instead of buying a PS3 and 2-3 games that you never play again and could care less. In essence what I am saying is moding for the boxes and piracy is actually helping rather than hurting.
half of the appeal of playing the next generation systems is playing the games online, XBOX 360 has the ingenious feature of forcing you to update every game the first time you play it, thereby connecting to the internet, when you attempt to update a burned game you are then denied access to XBOX live, rendering your account and modded XBOX worthless for online functions. digital downloads are not going to replace retail, or you wouldn't see digital downloads being released as retail packages (rock band track packs, downloadable content packs for GTA4, etc). You should short GME 100%. Almost every console in existence, as well as computers have had to deal with software piracy, it is a very irrelevent figure to the big picture, although it does exist, you just can't get the same experience with pirated xbox games at this point.
Well software piracy becomes more relevant as games become more expensive, which they are.
Second, everything begins gradually. Remember you couldn't even download add on packs before, you had to buy them at the store? now you cant find them at the store at all. it's just a gradual process & as internet speeds are getting faster it becomes more convenient to just download a game.
From my understanding, mods are getting more sophisticated so that you can avoid xbox live detecting whether they are pirated or not.
These are just facts. I can never understand why you guys insist on ignoring the facts. Similar to a guy that stay with a chick that's sleeping around because he thinks he loves her. Move on suckers!!! and buy the publishers