1) Video games are not static content and do not have the same ending every time like a movie. The physical medium remains high value trades because you can't do that online 2) Your kids are playing these cheaper games online while they save for the next generation console, and complete new library of games they'll need because of no backward compatibility. Mark your calendar for Jan 15 and let's have this conversation again..
Thanks for the comments...
1) Dynamic content is exactly why DDL will dominate.
2) Physical medium is bad for game developers who aren't exactly making a bunch of dough with physical content distribution. DDL is their primary future. They will sell DDL as follows: New releases will be high price and DDL will get preference over physical. Games on DDL will gradually have their list prices cut which will pressure the rare used game disc price. (Same as now for movies and games) New physical media will be either extra high price or have DRM. (Same as now for books, movies, and music.). Old used games will be trash because developers will add some new content for DDL to obsolete the old static media while cutting DDL price to harvest value selling older library direct to consumers.
3) My kids (3 boys) and nephews could care less about new consoles. They are all into PC gaming.
GME is a bet that the console cycle of 2005 repeats despite massive improvements in alternate games, platforms, hardware, PC costs, Internet speeds, etc. GME is a bet on pay phones, turntables, Blockbuster, Tower Records, Borders, Babbage's, yellow pages, and any of hundreds of other businesses that were replaced by digital distribution of content.
Yep - Do the kids ever want to go to Gamestop? Not anymore. Can't buy Minecraft, League of Legends, or any of the most popular games there. Get used (old) games for almost nothing online and don't even need Mom to drive you to Gamestop. Maybe the few who don't want to download Ghosts will go. Oh, they can trade in their old ipods too.
Digital buys on consoles go through the platform holders who take 30%. No need for a new middle-man there. Steam owns PC. There are likely to be more Android based "consoles" soon, including one rumored from Google itself, through which all sales will be digital via the Google Play store, giving Google 30%. There isn't a lot of room for GME to be able to offer content the way Netflix does.
yeah, you guys are so right. Just like Blockbuster, Gamestop RENTS used and new games, hardware, cables, used phones, consoles, headsets, etc, etc. Heck, I can RENT all that stuff online. Heck, i'm going to have my kid babysat via online also.