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GameStop Corp. Message Board

  • kmemt29 kmemt29 Jan 27, 2010 11:13 AM Flag

    cannot even hold a nickle jum for more than few minutes

    woof woof

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    • I'm sure thats probably the exception rather than the norm though.

      But I take your point and I don't disagree.. I'd just like to see what sort of cost savings they come up with before necessarily saying it was a bad idea.

      "#1 What is the relationship between console sales (a relatively minor part of GME's business) and used game sales?"

      I'm not really sure what you're asking here.

      "#2 I have been led to believe that it will take a pretty powerful computer and a lot of time to download the popular games. Also, there is no resale value. A valid point?"

      DLC means you can charge for add-on content in chunks that will download much quicker and you can use free DLC to undermine used games by making DLC free only to "first purchasers". As far as full games go, companies like Steam are already providing full downloads that are effictively "license only" that prevent resale and it is a strong growth market. So it is happening slowly and is likely to increase in the future.

      #3 Again, I tend to agree with those who contend that Wal-Mart, Target and others carry a limited number of titles and have nearly nonexistant counter help. Was their Xmas promo just flash-in-the-pan or real continuing competition?

      The big question. Walmart aggresively discounted the Wii over the holidays which drove a lot of store traffic and likely meant they picked up a lot of software sales on the new Wii titles. They also had heavy promotion on other software titles. Whether it's something they'd consider doing again probably depends on how successful they believe it was and whether increased revs justified the hit to margins. I don't know the answer to that.

    • I know for a fact that MANY customers like to shop GME with d their favorite salesperson. I personally know of instances where a salesperson was transferred to a different (but nearby) store and customers followed him/her there.

    • Not being argumentative, but tryiing to understand--
      #1 What is the relationship between console sales (a relatively minor part of GME's business) and used game sales?
      #2 I have been led to believe that it will take a pretty powerful computer and a lot of time to download the popular games. Also, there is no resale value. A valid point?
      #3 Again, I tend to agree with those who contend that Wal-Mart, Target and others carry a limited number of titles and have nearly nonexistant counter help. Was their Xmas promo just flash-in-the-pan or real continuing competition?

    • "MAY NOT be the people that a successful retailer wants."

      Agreed, but then again working at GME isn't exactly rocket science..

      "Some here believe that used (not new) software is the key to GME's successs. If so, then Walmart's pricing of new software should have little impact regarding company profit."

      To say one is the key over enough is ridiculous. Both are key if they are going to experience earnings growth. They can not afford a significant decline in either. New is under threat from big box retailers, and used while currently a lot more insulated long term is threatened by publishers taking steps to devalue (or eliminate) resale of games. Gamestop has to demonstrate it can effitively combat both.

      I agree that a lot of pain has been priced in already. I was actually not making any judgement about GMEs fundamental value - simply stating why I believe the price has declined to these levels.

    • I wouldn't be surprised if people that are 1) into gaming and 2) don't have a lot of options other than working in retail would still find Gamestop a very attractive place to work.
      ----------------------------------------------

      TRUE, BUT, they MAY NOT be the people that a successful retailer wants.

    • Kind of funny because everyone here has his/her own opinion. Some here believe that used (not new) software is the key to GME's successs. If so, then Walmart's pricing of new software should have little impact regarding company profit. Assuming your point is correct, one cannot deny that the new releases this year will result in significantly greater sales.

      Another point....valuation does make a difference. Yes, I would be very scared if I owned a high PE stock with similar issues..just not the case here. How many times have we heard those arguments and when have they all been priced in? This stock has been beaten up over and over again. Stocks do not go straight down and people smarter than me will take advantage of these declines.

    • Exactly... I worked for Rhino Video Games for two years before the Gamestop buyout...Switched business model from customer service model to sales based- drivin with the proverbial carrot dangled out front, albeit, a rotten carrot. There are a lot of low-level to mid-mgmt positions who love their job but the "policy makers" are complete a@@holes. Threats of loss of job on a daily basis with emails, pychological pressure during any conversation with "corporate". I once heard a DM of Gamestop literally say..."If you cant handle selling subscriptions and reserves than you need to find another job!" What happened to connecting with your customer base, knowing their wants and needs and finding a balance that suits their family. Its profit based only. Reserves give them the ability to buy more for less--no transfer of savings to customers. They get X amount of dollars up front before any good or service has occured. All that money gains interest while you wait for your game. Subscriptions are only "propaganda rags" that are force fed to customers to alter their interpretation of the games before they come out. Gamestop owns GameInformer makes millions of dollars generated through adverstising dollars---again, no savings passed to customers. Sell your stock and never shop there again!!!

    • I'm kind of on the fence as to whether it's an issue or not. There are positives and negatives with the moves they been taking.

      I wouldn't be surprised if people that are 1) into gaming and 2) don't have a lot of options other than working in retail would still find Gamestop a very attractive place to work.

      More than anything it kind of worries me that they feel those sort of cost savings are necessary.. are they expecting to have a lot of difficulty growing revs going forward? Or is it just a kneejerk reaction?

    • Good Post,
      I would add one more, maybe minor compared with the rest, terrible employer/employee relations which can't help sales.

    • The "reality" IMO is a number of threats to GMEs business model right now:

      1. Traditional console revenue moving to online sales via DLC, etc. which also hurts used game sales because of the impact on product resale

      2. Cheap/free to play content for platforms like the iPhone, games like BF1943 eroding the value of $60 games

      3. Threats from big box retailers like WMT due to pricing pressure on new software

      Of those number 3 is definitely the most real right now - holiday sales were definitely impacted by WMT's agressive pricing last year.

      The other two are a lot more difficult to quantify but 1. is definitely having minimal impact right now, but is likely to increasingly be an issue over time.

      The problem is the retail industry as a whole really suffered a lot last year, and it's hard to know how much of that was economic, the console cycle and how much is specific threats to GME.

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