Sweet schadenfreude! Gamestop stock plunges.

[MinisterofDOOM]

It's too bad you cannot see the evil grin I wear as I write this. I've ranted about Gamestop's suck before, and the fact that despite being a games-only store, they're the last place I'd go for games.

http://kotaku.com/5417200/game...slash

Supposedly, the stock drop is due to Gamestop not being able to compete with Walmart, price-wise (due to Walmart's holiday pricing). Analysts suggest that GS drop prices to remain competitive. As a customer well acquainted with Gamestop's methods, I have some different suggestions:

Keep USEFUL effing business hours. I can go to walmart and snag a game any time of the day. When a game comes out, Walmart has it on the shelves (or at least in boxes) at midnight. Gamestop doesn't open until 10. Then they close at 9. WTF kind of hours are those. I PROMISE that if GS opened at 8am and closed at 10pm, they would do MUCH better. Especially during holiday hours, people want to start their shopping as early as possible. Sometimes on the way to work. Walmart has a stranglehold on that segment.

Another of Gamestops's BIG gaff's is their minimal orders of new games. They intentionally order small quantities of games to artificially drive demand for their preorder system. If you don't preorder, you probably aren't going to get a game on launch day. UNLESS you go to a different store. Which is ridiculous. They need to drop the BS preorder garbage and just sell the damn games. Walmart does not make me preorder. But I can walk into Walmart 10 hours earlier than gamestop and get a copy of a game. Even with a preorder at GS it's quicker, cheaper, and easier to get the same game at Walmart.

Even non-24-hour supermarkets have a leg up on GS. Super Target opens at 8am, not 10am, and often offer small (~$10) gift cards with popular titles. Even if the price is the same and there's no gift card attached to the game you want, at least Super Target is open at 8am.

Gamestop NEEDS to reevaluate its APPEAL to game-buyers. Not just gamers...anyone looking to buy a game. How many grandmas do you think will be buying games this holiday season? Currently there is NO REASON for those people to go to gamestop. Even gamers only benefit in the event that they have a game they want to trade in. But for just buying games, Gamestop has NOTHING to offer over all-encompassing supermarkets. That's effing PATHETIC. How can a niche store exist if it doesn't offer niche perks?

[packerjd04]

Another of Gamestops's BIG gaff's is their minimal orders of new games. They intentionally order small quantities of games to artificially drive demand for their preorder system. If you don't preorder, you probably aren't going to get a game on launch day. UNLESS you go to a different store. Which is ridiculous. They need to drop the BS preorder garbage and just sell the damn games. Walmart does not make me preorder. But I can walk into Walmart 10 hours earlier than gamestop and get a copy of a game. Even with a preorder at GS it's quicker, cheaper, and easier to get the same game at Walmart.

That's honestly the biggest problem I have with GS, I continually tell people I hate GS for this very reason. It actually plagued me when Forza 3 launched. I went to buy it at GS because I had a $15 giftcard there, and that is the only reason I would ever go to buy a game there. Of course the closest store to my house did not have any copies left, and I had to drive an extra 20 minutes to another store to get a copy. Other than Forza 3 I have bought almost all of my games from Walmart, and a rare one or two at Bestbuy.

[Hijacker]

The only time I pre-order a game at Gamestop is if I want a special edition of something. Walmart never carries the special editions, and if I don't pre-order, I know I'll lose out on it.

[RCA]

I agree with the pre-order nonsense of GS but I will NEVER buy anything from Walmart. They run an evil corp and I will never support it. As for the hours, are you really that upset because GS's hours are 10am-9pm VS Walmart's hours of 8am-10pm...

It's a 3 hours difference. It would make me slightly annoyed but not worth ranting about. I will have to agree with the Holiday hours though. If on holidays GS is only open from 10am to 9pm then that is BS.

[marlin29311]

The only time I pre-order a game at Gamestop is if I want a special edition of something. Walmart never carries the special editions, and if I don't pre-order, I know I'll lose out on it.

+1

Usually if there is a game that I want to get on release day, there's also some sort of special edition that I can't find anywhere else without preordering it...

Otherwise, I don't buy games when they first come out. I wait to buy used 2 weeks later and save money. I can't do that at walmart.

[MinisterofDOOM]

As for the hours, are you really that upset because GS's hours are 10am-9pm VS Walmart's hours of 8am-10pm...

It's a 3 hours difference. It would make me slightly annoyed but not worth ranting about. I will have to agree with the Holiday hours though. If on holidays GS is only open from 10am to 9pm then that is BS.

Ummmmm...Walmart is open ALWAYS. 24 hours a day.

[breadbox]

I also heard they pay their employees retardly too. Like they give you this check card for a weird account that your pay goes into, although you may be able to arrange direct deposit but I just remember a friend hating how that store works and pays.

[RCA]

Ummmmm...Walmart is open ALWAYS. 24 hours a day.

Well your lucky, the Walmart's in the eastern metro area close at 10pm. But do you feel that GS should be open 24/7? It wouldn't make any sense. Who buys video games at 3am? It isn't worth having a store open 24/7 just so people can buy video games, you can't blame GS. This should be less about how bad GS is and more about how good Walmart is.

[MinisterofDOOM]

No, I didn't say they should be open 24 hours. I said they should open at 8. Like virtually every other store in existence. At least for the holidays, when people want to get shopping done early and get on with their days. You can't tell me they can't afford 2 more hours a day when they build stores within a mile of each other. There are 5 gamestop stores within 10 minutes of my house. How about we axe 3 of those and extend the operating hours?

[RCA]

Hmm, well this seems to be a Utah issue. GSs near me are in malls, very seldom do you find a GS standing alone in it's own building. I agree with being open earlier during shopping seasons but I doubt it will stop people from going to GS because it's hours.

The reason Walmart's prices are dominating GS's is because Walmart advertises much more and people will be shopping at Walmart all ready, so while grabbing groceries and other goodies you can buy a TV and video games. People notice the price savings and they never turn back. As for grandma buying games, she most likely doesn't shop around for the cheapest price of L4D2. So she buys it not knowing if it is reasonable or normal pricing. GS is just at such a big disadvantage that it will cease to exist unless GSs start opening up in Walmarts.

[bmike818]

Amazon.com is now my source from video games. They don't charge tax and free shipping. Plus Amazon only charges $6 for street date delivery. I never liked GS, I used to always go to Circuit City.

[MinisterofDOOM]

There is less than zero, we're talking NEGATIVE appeal to buying a game and waiting for it to ship. I don't get the appeal of amazon at all. Yay, I save money. Too bad I can't play the game I saved it on for days now. Screw that. If a game is good enough for me to buy I want to play it now. If it's not good enough to want now, it isn't worth buying.

[Logan76]

There is less than zero, we're talking NEGATIVE appeal to buying a game and waiting for it to ship. I don't get the appeal of amazon at all. Yay, I save money. Too bad I can't play the game I saved it on for days now. Screw that. If a game is good enough for me to buy I want to play it now. If it's not good enough to want now, it isn't worth buying.

The man speaks the truth!

[BusyBadger]

There is less than zero, we're talking NEGATIVE appeal to buying a game and waiting for it to ship. I don't get the appeal of amazon at all. Yay, I save money. Too bad I can't play the game I saved it on for days now. Screw that. If a game is good enough for me to buy I want to play it now. If it's not good enough to want now, it isn't worth buying.

Funny, I see NEGATIVE appeal in paying more for something than I have to.

Amazon delivers newly released games to you on the street date. Sure you don't get to enjoy the midnight release at Gamestop, with a bunch of social misfits that can't seem to figure out how to turn on the shower or what aisle Speed Stick is located in, but I'm ok with that.

With your recent tirade about Gamestop I'd figure you a shoe-in for shopping Amazon, especially for new titles. Amazon is going to get the games to you before the big box stores have them out (in most cases) and you don't have to go anywhere to get it.

Amazon.com is now my source from video games. They don't charge tax and free shipping. Plus Amazon only charges $6 for street date delivery.

Bingo!

I'll go to GS if I like the exclusive super-pimp edition of whatever new release I'm anticipating, but if I just want the plain Jane version of the game I'll pick it up from Amazon every time.

[HashiriyaS14]

Gamestop needs to step up their Used Game operations.

They need to stop ruining boxes with stickers, sell more competitively, offer slightly higher trade-ins on old titles, etc.

The used/trade-in market is their only weapon. They'll never beat the big-box guys selling new shxt. Gamestop really only sells new product to get you to trade in used product which they can then resell at a tremendous markup and make all their profits.

Honestly, I could see it going all used at some point...maybe downscale the number of locations. They'd have to stop damaging product though....although they now commit to offering cases with all used games, which is a big step up.

[BusyBadger]

They need to stop ruining boxes with stickers

God, I effing hate that. I drop in to a couple of stores to see if someone has traded in some old-school gem that I'm looking to add to my collection. It kills me when I find one only to have to deal with a box / case that has an appointment with a bottle of Goo-Gone when it gets home.

[snwbrdr435]

The gs' up here are everywhere. From where i am currently sitting there are 6 withing a 10 min drive. For heavens sake there are 2 in the same mall on different floors pretty much right above/under eachother.

[C-Kwik]

Ummmmm...Walmart is open ALWAYS. 24 hours a day.

Not all of them. Depends on the locale. I don't know of any around me that are open 24 hours anymore. The newest one was open round the clock for about a year then started to close at 10PM.

I can see the appeal of picking up a game as soon as possible, but I think most people working regular hours don't care either way. 8:00 or 10:00 AM has little realistic difference as they usually need to make it into work by 8 or 9. So they either pick it up during lunch or after work. Gamestop does have a better service for major launches. Midnight launches do occur for these and some will host small tournaments where they give winners prizes. I've seen one give away a free copy of the limited edition version of the game that was being launched.

As for the idea of limiting the number of launch titles, that is absurd. Reducing inventory does not increase their revenue unless they can take advantage of higher prices per unit. And that wouldn't happen because it would drive customers to other stores. The retail gaming industry tends to fluctuate a lot. While its probably fairly easy to predict most of the fluctuations (just follow major launch titles and price drops on consoles), what tends to be hard is to figure out the number of products needed. Game Stop stores are specific to gaming and don't have other products that help to absorb such fluctuations in business. Having excess stock, especially units that have slow turn-around, will mean there is capital tied up on the shelf.

[MinisterofDOOM]

As for the idea of limiting the number of launch titles, that is absurd. Reducing inventory does not increase their revenue unless they can take advantage of higher prices per unit.

It's not that they strictly limit the totals. It's launch-day units and the way they work with preorders. They have a pretty good system. They'll order as many units as they have preorders to support, then maybe 5 more. That's not me speculating, either...it's how they do things. Go ask a GS manager. Stores have no control over it, GS corporate does it that way. They only get a handful of extra launch-day units beyond preorders.And the purpose behind that is to drive demand for those preorders. Low chance of getting the game on launch-day will encourage most people to preorder. And since GS usually offers preorders before most other stores (in fact, they're notorious for offering preorders on games that don't even have concrete street dates...and even games that have been cancelled or delayed for years) they can get a nice head-start locking in sales for games on launch day.Preorder demand is also boosted by the recent boom in GS-exclusive bonus content.

It's all just an effort to lock in more guaranteed sales on launch day, and to suck in more advance preorder income. None of it really benefits the consumer at all, if you think about it. The need for preorders ONLY exists because "loose" units are restricted. Go to a place like Walmart or Target that doesn't do preordering at all and there's a slim chance they'll be completely out of that game. It's only GS that has issues meeting non-preorder demand. Because they want it that way.

They're not limiting inventory, they're limiting "loose" inventory.

Gamestop needs to step up their Used Game operations.

Definitely agreed. Every once in a while I'll realize I have a handful of games I don't EVER play, and get the urge to try and trade them in. But the fact that I'll get offered maybe $10 in store credit makes it not even worth the drive. Unless you've got VERY NEW titles, you won't get jack for them. And then they resell them for an equally frustrating markup. I realize they need to make money, but it helps if you're not OBVIOUSLY gipping the customer BOTH WAYS. At least pay me a decent amount for the game so I can make up for your exorbitant markups.

[bmike818]

I want Circuit City back!!! I haven't bought a new CD since they went out of business. If it weren't for these so called exclusive limited collector's edition packs that they have, I probably would have just bought it at Amazon, or at ToysR Us. At least TRU has been giving out $20 gift cards lately (ODST, FORZA, MW2) as a launch day promo.

[C-Kwik]

It's not that they strictly limit the totals. It's launch-day units and the way they work with preorders. They have a pretty good system. They'll order as many units as they have preorders to support, then maybe 5 more. That's not me speculating, either...it's how they do things. Go ask a GS manager. Stores have no control over it, GS corporate does it that way. They only get a handful of extra launch-day units beyond preorders.

If stores have no control over it, then how would a GS manager know what is actually occuring behind the scenes? Consider that GS has to order launch games in advance from a limited number that will be ready for launch shipment. Preorders made before final order dates (or before all copies are sold) helps GS to more accurately project sales, but even then, there will still be a period of time when they will have to rely on sales forecasts. This means that stores will receive additional copies based on what they have left. I'm sure GS would love to predict it more accurately, but game sales are not always easy to predict. Pre-orders are a win-win for them since it helps to predict sales better and ensures they can account for their initial purchase. The latter can be pretty important in a business model like theirs.

GS is a relatively small operation. While they likely have great games revenue compared to big stores, their overall sales revenue is going to be miniscule compared to what places like Target, Walmart and Best Buy bring in. This means they take a much bigger risk if they tie up capital in a bunch of titles that may not sell out according to the turnaround times they have decided are ideal for profit. Stretching themsleves too much could leave them with a lot of red in their books. They know where they stand compared to big box stores. They have to use a strategy that is in line with their size. Trying to compete at the same level is a recipe for failure. Bear in mind that GS is likely not a cash rich company. Large initial purchases likely requires a temporary debt. Which means their profit margin is diminished that much more with time if a unit is on the shelf for too long. In such a case, playing it safe and making enough money to make sure they stay in business is a better option than taking a bunch of unnecessary risks that could put them out of business.

And the purpose behind that is to drive demand for those preorders. Low chance of getting the game on launch-day will encourage most people to preorder. And since GS usually offers preorders before most other stores (in fact, they're notorious for offering preorders on games that don't even have concrete street dates...and even games that have been cancelled or delayed for years) they can get a nice head-start locking in sales for games on launch day.Preorder demand is also boosted by the recent boom in GS-exclusive bonus content.

Again, absurd. People who don't get their launch title from GS because they ran out will likely go to a bigger box store. Unless its a title that actually sells out everywhere, they will see that the game is available elsewhere. While GS does want to get more preorders to lock in sales, the better business model would be to try and have a copy for every person that walks through the door looking for it.

It's all just an effort to lock in more guaranteed sales on launch day, and to suck in more advance preorder income. None of it really benefits the consumer at all, if you think about it. The need for preorders ONLY exists because "loose" units are restricted. Go to a place like Walmart or Target that doesn't do preordering at all and there's a slim chance they'll be completely out of that game. It's only GS that has issues meeting non-preorder demand. Because they want it that way.

They're not limiting inventory, they're limiting "loose" inventory.

Uhh? I benefit from it. Peace of mind and convenience is good enough for me to preorder titles I really want. Depends on the title, but the last thing I want to do is drive from store to store looking for an available copy. Not all of us can go to pick up a game first thing in the morning. And not all games will have midnight launches.

Ultimately, if a person goes into GS without a preorder and they ran out, then the customer will go elsewhere. If its a title that sold out everywhere, they will either do the same, or will have already been elsewhere. If they've already been elsewhere then GS would not have gotten that sale anyways had it been a title that wouldn't sell out.

I want Circuit City back!!! I haven't bought a new CD since they went out of business. If it weren't for these so called exclusive limited collector's edition packs that they have, I probably would have just bought it at Amazon, or at ToysR Us. At least TRU has been giving out $20 gift cards lately (ODST, FORZA, MW2) as a launch day promo.

I liked some deals CC had. Particularly with consoles. They always did a better job packaging accessories with them at the same price. Of course, they probably did that to try and compete with Best Buy, but it was still nice to get a free controller or something. But BB usually had better deals on movies during the week of release.

[MinisterofDOOM]

Uhh? I benefit from it. Peace of mind and convenience is good enough for me to preorder titles I really want. Depends on the title, but the last thing I want to do is drive from store to store looking for an available copy. Not all of us can go to pick up a game first thing in the morning. And not all games will have midnight launches.

No, that's my whole damn point: you won't have to drive from store to store to find an available copy, because Gamestop is the ONLY STORE ON EARTH that ever runs out. That's my whole point. The entire point of my post. The whole point of this thread. Gamestop is a GAMES STORE and they're the only place that ever runs out of games. Despite all that preorder garbage.I have NEVER been able to get a game at gamestop but not at a supermarket. But I have, on many occasions, found myself in the opposite position. THAT is why I stopped going to GS. They are the gamble. Go there and you may have to go somewhere else. But if I just go to Target or Walmart first, I know they'll have the game in stock. No guessing, no wondering, they will have it.

And the midnight launch thing is exactly what I've been saying as well. That ONLY matters for gamestop. Walmart doesn't do "midnight launches." But when a game goes on sale on the 5th of Month X, and you're open 24 hours a day, when do you start selling the game? At midnight on the 5th of course. GS doesn't have that luxury, they have to reopen at midnight specially for their midnight launches.

When the first WoW expansion came out, I picked my copy up at walmart. My roommate, a serious wow addict, had preordered his copy at Gamestop. He spent an hour standing around in the cold at GS while I was at home installing my copy already.

The whole point is that despite being a dedicated games store, they are actually LESS convenient than just driving to effing Walmart. No matter the time of day. Even when they're actually open they're less convenient. At Walmart you walk in, have someone unlock the game case, and buy your game. At GS they try and sell you 50 extras and preorders and a stupid membership and a subscription to the worst magazine on the face of the earth and then even though the game cases are on the shelves they still have to get a manager to unlock the game drawer where the discs are kept separate. All this for a game you weren't even sure you could find there.

[bmike818]

I need to buy something at GS, I asked what time they closed today they said 12am

[bmike818]

...no GS for me I ended up at http://www.gamedude.com great if you are local

[C-Kwik]

Sorry for the delayed response. However, do understand that Walmart in your area is likely vastly different than it is here. While its possible there may currently be a 24 hour Walmart, somewhere in socal, they aren't that common. I know of at least 3 that were and 2 no longer are. Not so sure about the third as I don't go to that area. Yours obviously is 24 hours and would be more convenient.

I rarely step foot in a Walmart anyways. Not sure about your area, but its a zoo out here. Its typically very busy and lines are always fairly long. I prefer Target much more and outside of the holidays, Best Buy is even easier for me. I will concede though that the Walmart near me that used to be 24 hours was just fine after 10PM. But that is irrelevant here. If I'm buying a game that I absolutely want to make sure I have in hand at a midnight launch (for titles that GS actually do this), I pre-order it. This is a rare situation for me anyways.

That said, I've rarely gone into a GS and not been able to find a game in stock. At least not more noticably than elsewhere. The only thing I ever remember going from store to store to look for was a DS Lite. But at the time, it was hit or miss at every store.

Lastly, for items whose stock that I might consider questionable I can go online and look to see which GS stores might have a copy. Their site does allow for that. As does Best Buy's site. Calling is always an option as well. Perhaps not as convenient as your circumstances, but as I stated, mine are different. Not to mention Target and GS are closer than any Walmart is to me. The point here is it works for some and not for others. Doesn't make it a bad business model as it does work for some. Such a small chain is likely to benefit from catering more to a niche market. Trying to compete directly would likely become expensive for them.

[BusyBadger]

I'm one step closer to dropping GameStop after I tried to pre-order Mass Effect 2, Collector's Edition this afternoon. Apparently they had it "in the system" for pre-order for a few days and then it was removed from their ordering SKUs.

So while the guy was apologizing and saying that he could call if it was available for ordering again I told him,"No problem, I just ordered it from Amazon on my Droid."

[MinisterofDOOM]

Yeah, they pull crap like that all the time. Part of the reason for it is that they'll start taking preorders before there's anything official from the game publisher. That means they often have to stop taking or cancel preorders because the game has been delayed or something has changed. I preordered Half Life 2 when it was first available at gamestop in 2003 (I think...I STILL have that preorder receipt stub in my wallet to show my HLfan-ness). Then later they stopped taking preorders when the leak delay happened. Then much later they started again. My original preorder actually carried over...I think...I don't remember.

[USsil80]

know how you feel.. just tryed to pre-order FFXIII for PC and they said they can't take pre-orders for the PC

[MinisterofDOOM]

Uh...I think that would be because there is no PC FFXIII. Or do you mean FFXIV?

[USsil80]

i thought there is was a FFXIII for PC.... that sucks.... no not ordering 14 yet, i will once there is a solid release date for it

Uh...I think that would be because there is no PC FFXIII. Or do you mean FFXIV?