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GameStop Corp. Message Board

  • ebitdammit ebitdammit Mar 24, 2011 2:26 PM Flag

    Why Digital Delivery Adds Value for Some, But Not All

    iTunes vs CDs:

    99 cents for permanent access to a song that will be played tens of hundreds of times. Delivered digitally in 30 seconds. The alternative? Buying a 15-20 dollar CD to listen to the same song. iTunes offers a distinct advantage with its digital model, it is more convenient, adds value for the consumer, and offers instant gratification.

    Netflix vs. Blockbuster:

    Digital delivery of rental movies offers huge advantages over a brick and mortar rental model. People aren't interested in having a physical copy of a DVD they are going to have to return anyway. Given the choice, streaming is much more convenient, and adds tons of value for the consumer. A modest monthly fee gives you unlimited streaming of movies, as well as physical copies in the mail for those movies unavailable for streaming.

    Gamestop vs. PS3 Store/XBox Store/Wii Store

    New Games: You pay the same price for a copy of a game at Gamestop as you would through the console online stores, no cost advantage for digital delivery. If you're one of the few that isn't close to a Gamestop, or don't have a means of getting to a brick and mortar outlet, this method offers some convenience. However, the customer will have no way of reselling the game afterward. At Gamestop, you can recoup a large part of the game cost by trading in for a new game. You cannot trade in digital copies of games.

    Used Games: If you're interested in getting a cheaper, used copy of a game, you don't have a digital delivery option. On the other hand, Gamestop has the largest retail selection of used games in the world. In these trying times, people are looking for the most entertainment they can get on the cheap, and I don't see what's going to spur migration to a model that puts even more of a financial squeeze on the consumer while adding very little value.

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    • It's like asking why do film studios need Netflix??? Think about it

    • Jester I never got that theory either. Why on earth would anyone go thru that and why would SNE or MSFT sell to them at a discount for GME to be able to make a profit no matter how small.

      But I believe I read that GME was rolling out a DLC center on THEIR site that would allow you to make the purchase online and it would go to your 360. Is this correct? Even so, it still adds one step that would not be necessary.

    • Ironic that your last line combines BBY and GME. BBY once again disappointing and being downgraded to sell by someone this morning. I'm surprised no one has mentioned the good old BBY for GME story.

    • Then log-on to

      You can get your DLCs from there and STILL get your Loyalty Program points as well.

      And guess what? NO DRIVING!!!

      But for people like me that visit down town districts...College Towns....I like to go several places and if GameStop is one of the places I visit..

      Why wouldn't I spend time browsing the DLCs?

      Say I am thinking of buying a best selling title from 1-2 years ago?

      Maybe I want to know what DLCs that particular Video Game has if any?

      I can not only walk out of the store with my USED copy of Call of Duty Black Ops ....

      But I can also have the DLCs purchased as well...and all that rolls right into my Loyalty Program Points.

    • You're confused about these charts.

    • Wrong! It's called a Stock Split.

      The Yahoo Charts of 1, 2 and 5 years do not show you the impact of the Stock Split.

      You have to go to and check that out in their historical stock price charts.

      The Stock Price Split is why the share price cut itself in half from $60.

    • It is likely.

      I live in Michigan in one of the few counties in Michigan that has seen a SPIKE in Population Growth.

      Well...GameStop happens to have enough stores scattered through this county that has gained 6.5% in population over 10 years where it is impossible not to live somewhere in the County...and not be in walking distance of a GameStop.

      Except of course for where I live now is in a sparsely populated area of the County and is very new... Homes only 14 years old... We are up an coming. So..GameStop is not walking distance.

      But the bulk of the population say in a Royal Oak Michigan... The Business is on Main Street.

      Residential streets intersect into Main.

      I house shopped all over Royal Oak Michigan and you can not live anywhere and not be just 5 blocks or less away from GameStop.

      Detroit Michigan is losing population so they are exception but who cares? They dropped 25% in population in 10 years. People are living in densely populated Down Town districts..

      Ann Arbor for example... College Dorms + Residents are densely close together and you can hop on a BUS to your destination.

      Gas Prices on personal vehicles should be at the very bottom of worries for Shoppers.

      The only worry here is what GAMESTOP will do in terms of shipping product to their stores.

    • Wrong varchild.

      Where you see this message board, Yahoo has a chart. Click on it. Add the S&P500. Then click on 1, 2 and 5 years.

      "iOS and APPLE iPhone might be around the corner and if they do enter those platforms..."

      What????? I suppose they'll sell Kongregate's Flash games on iOS?

    • "They now have DLCs offered in-store with a swipe of a card.."

      So I can turn on the 360 and with a couple of clicks, download my $10 DLC.

      Or, I can put on shoes, drive to GME, spend half a tank of gas in the process and 20 minutes there and back plus waiting in the store as needed, get a code for that DLC, come home, turn on the 360, manually enter a 20-digit code, and download my DLC, which has now cost me 15% more due to the gas.


      What we were saying about convenience?

    • "For many, GameStop is in walking distance away from their house or apartment."

      For many? That seems unlikely. Myself, the closest store is about 4.5 miles away. There and back is about $1.75 in gas if my only stop is GME. Shipping costs are higher. I see NewEgg offering 1TB drives for as little as $60, so a 360 game would require a cost of 50 cents in storage.

      Resell value is the big thing, which for GME means you have to hope that Sony and MS never ever lower their prices, or allow trade-ins of digital games.

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