Next Xbox and the demise of GameStop. (Durango info makes it more possible!)

With the rumors of the Next Xbox not being able to play used games becoming more and more prevalent, what does that mean for GameStop? At least one of the next gen systems not playing used games means a 33% loss in profit for them, and they are closing stores already. However you feel about the stores and/or the employees, they are the last large video game retailer in the U.S. Eliminating used games means most likely eliminating them. How do you feel about that? No more game stores...

Gamestop doesn't need Microsoft products to survive.

"Used games are the bread and butter of GameStop's earnings. In its most recent fiscal quarter, 28 percent of the company's overall sales were from used video game products bringing in $496.3 million. Used games represented over 48 percent of GameStop's gross profits." -- CNBC

Just to add insult to injury: Both PS4 and the Next Xbox will focus on Day-One, Digital Distribution of New Releases too. This means a cut into used business, as well as New Releases too. GameStop's Bread, butter and the knife to cut and spread them too.

Eventually everything is going to go digital, and when that happens there won't be any more used games at all. Gamestop can try to delay the inevitable but eventually, they're going to have to be able to adapt to not selling used games or they'll go out of business. 

I think they can survive without Microsoft, but I don't want that to happen. Unlike most people I love my ebgames (gamestop) and want them to continue to be successful. GodModeEnabled

Ditto. Not only do I have more than a dozen within a 15min drive, but the best ones have wonderful staff, plenty of eye candy(for both sexes) and are real gamers.

-

Also have to take ship jumpers into consideration. If the nextBox is no used territory, how many millions will say sayonara to M$? Their numbers will drop, but it's not a death sentence by any means. They'll just close down the least profitable stores. Luckily, I am in a large metropolis, so I'm good. They're here for a while longer.

Gamestop doesn't need Microsoft products to survive.

Bigboi500

But they would take a pretty hard hit in the process. It wouldn't kill the company, but it would kill off stores.

Blocking used games might be the demise of the next xbox. 

And no MS isnt going to block used games. They cant be that stupid.

Blocking used games might be the demise of the next xbox. 

And no MS isnt going to block used games. They cant be that stupid.

S0lidSnake

Don't be so sure. The curse is that every company goes for two generations rock solid and then takes a huge steaming shlt in the third. All signs point to this: Microsoft is unfocused on core games, they've gone for three E3's now preaching to an audience that doesn't go to or watch E3. They've got their heads up their ass pretty far already. 

Oh yeah -- further proof? Don fvcking Mattrick. It's like the spirit of Goofy possessed an executive's body. 

But I totally agree on the first point. It will ruin Microsoft if they block used games. 

 How do you feel about that?

Phantom_Leo

I can't feel anything yet. We don't have any concrete facts about the next gen game consoles yet other than the hardware specs of the PS4.

Not sure MS will take that gamble. JustPlainLucas

I can see things from their end. MS may very well take the gamble of alienating gamers by creating another barrier of entry in exchange for the lion's share of third party support if "going new" was made to be the only way. Publishers could see this business model as "guaranteed" money and start abandoning Sony. Personally I think it would backfire big time, but stranger things have happened.

If Microsoft was that stupid then Gamestop could always use the space in their store to stock some retro stuff.

It'd be pretty nice to have a store to go to for some older games rather than depending on yard sales or flea markets and things like that.

Well I find it hard to believe that Microsoft will block used games on the 720 especially if they will be the only ones to do this. However if they do then I don't think that this would be the demise of GameStop. It would most definitely lead to some downsizing though.Archangel3371

[QUOTE="Archangel3371"]Well I find it hard to believe that Microsoft will block used games on the 720 especially if they will be the only ones to do this. However if they do then I don't think that this would be the demise of GameStop. It would most definitely lead to some downsizing though.Justforvisit

With the rumors of the Next Xbox not being able to play used games becoming more and more prevalent, what does that mean for GameStop? At least one of the next gen systems not playing used games means a 33% loss in profit for them, and they are closing stores already. However you feel about the stores and/or the employees, they are the last large video game retailer in the U.S. Eliminating used games means most likely eliminating them. How do you feel about that? No more game stores...

Phantom_Leo

[QUOTE="Archangel3371"]Well I find it hard to believe that Microsoft will block used games on the 720 especially if they will be the only ones to do this. However if they do then I don't think that this would be the demise of GameStop. It would most definitely lead to some downsizing though.Justforvisit

[QUOTE="S0lidSnake"]

Blocking used games might be the demise of the next xbox. 

And no MS isnt going to block used games. They cant be that stupid.

Shame-usBlackley

Don't be so sure. The curse is that every company goes for two generations rock solid and then takes a huge steaming shlt in the third. All signs point to this: Microsoft is unfocused on core games, they've gone for three E3's now preaching to an audience that doesn't go to or watch E3. They've got their heads up their ass pretty far already. 

Oh yeah -- further proof? Don fvcking Mattrick. It's like the spirit of Goofy possessed an executive's body. 

But I totally agree on the first point. It will ruin Microsoft if they block used games. 

You don't exactly have to win two console generations in a row to have a 3rd console curse. Look at Sega with both the 32x & Sega Saturn.

Don't be so sure. The curse is that every company goes for two generations rock solid and then takes a huge steaming shlt in the third. All signs point to this: Microsoft is unfocused on core games, they've gone for three E3's now preaching to an audience that doesn't go to or watch E3. They've got their heads up their ass pretty far already. 

Oh yeah -- further proof? Don fvcking Mattrick. It's like the spirit of Goofy possessed an executive's body. 

But I totally agree on the first point. It will ruin Microsoft if they block used games. 

Shame-usBlackley

If that's the case, shouldn't MS have another successful generation? I wouldn't consider their first console a successful or rock solid one.

Anyway, at this time I can't believe that MS would make this decision. It doesn't make sense. The damage to what they've achieved so far would be crippling. Rack this rumour up with the one about the console requiring a constant connection. The travesty of the new Sims game highlights that pitfall. Either one of these are potentially devastating. Both of them together would be the death knell of Microsoft's home entertainment/console hopes.

If that's the case, shouldn't MS have another successful generation? I wouldn't consider their first console a successful or rock solid one.

Ghost_Face

Absolutely successful. Just because a new team doesn't go to the world series its first year doesn't make it unsuccessful. Microsoft brought a lot to the console business and changed it in many ways. They went up against Goliath in the form of the PS2 and lived to fight again. As a system, the original Xbox was in many ways a superior experience to the PS2, as was the 360 until recently. 

For them to have gone up against heavyweights like Sony and Nintendo on their first outing and done as well as they did, I don't see how that can be anything but a success.

Absolutely successful. Just because a new team doesn't go to the world series its first year doesn't make it unsuccessful. Microsoft brought a lot to the console business and changed it in many ways. They went up against Goliath in the form of the PS2 and lived to fight again. As a system, the original Xbox was in many ways a superior experience to the PS2, as was the 360 until recently. 

For them to have gone up against heavyweights like Sony and Nintendo on their first outing and done as well as they did, I don't see how that can be anything but a success.Shame-usBlackley

As Steam has proven, you can get rid of used games and still be successful. Microsoft could pull it off if they set the MSRP at $10 lower than Sony and engage in an agressive digital distribution campaign with regular and compelling deals (up to 75% discounts on top titles). Publishers would be all over this, gamers would be more than willing to accept limited ownership in exchange for cheap games and Microsoft would be laughing all the way to the bank.

As Steam has proven, you can get rid of used games and still be successful. Microsoft could pull it off if they set the MSRP at $10 lower than Sony and engage in an agressive digital distribution campaign with regular and compelling deals (up to 75% discounts on top titles). Publishers would be all over this, gamers would be more than willing to accept limited ownership in exchange for cheap games and Microsoft would be laughing all the way to the bank.

UpInFlames

As Steam has proven, you can get rid of used games and still be successful. Microsoft could pull it off if they set the MSRP at $10 lower than Sony and engage in an agressive digital distribution campaign with regular and compelling deals (up to 75% discounts on top titles). Publishers would be all over this, gamers would be more than willing to accept limited ownership in exchange for cheap games and Microsoft would be laughing all the way to the bank.

UpInFlames

Steam usage didn't involve buying a proprietary device, but instead, one most people already have in their homes. That's like saying that Apple could take over the console market because they've sold a bunch iOS games. If that is the route Microsoft wishes to pursue, they don't need to release a console.

[QUOTE="UpInFlames"]

As Steam has proven, you can get rid of used games and still be successful. Microsoft could pull it off if they set the MSRP at $10 lower than Sony and engage in an agressive digital distribution campaign with regular and compelling deals (up to 75% discounts on top titles). Publishers would be all over this, gamers would be more than willing to accept limited ownership in exchange for cheap games and Microsoft would be laughing all the way to the bank.

SteveTabernacle

I don't think they'll do it, either. But it's not implausible nor would it necessarily be disastrous. I actually think that whoever does it first in the console realm will be in a better position - if they do it right. Because it's bound to happen sooner or later, that's the direction this industry is heading in.

[QUOTE="UpInFlames"]

As Steam has proven, you can get rid of used games and still be successful. Microsoft could pull it off if they set the MSRP at $10 lower than Sony and engage in an agressive digital distribution campaign with regular and compelling deals (up to 75% discounts on top titles). Publishers would be all over this, gamers would be more than willing to accept limited ownership in exchange for cheap games and Microsoft would be laughing all the way to the bank.

Shame-usBlackley

Steam usage didn't involve buying a proprietary device, but instead, one most people already have in their homes. That's like saying that Apple could take over the console market because they've sold a bunch iOS games. If that is the route Microsoft wishes to pursue, they don't need to release a console.

Hm, I don't see how does that have anything to do with it. I mean, Valve certainly doesn't need to release a living room PC, but they're still doing it. Also, iOS games are just completely different, both regarding the design and pricing, and Apple itself is just so not into gaming. Steam and consoles are equals, it's the exact same games. Microsoft has a huge market share, why not utilize it? Then there's the huge marketing machine that Steam never had. I'm not saying that it's the exact same thing, but they could definitely pull it off.

I don't think they'll do it, either. But it's not implausible nor would it necessarily be disastrous. I actually think that whoever does it first in the console realm will be in a better position - if they do it right. Because it's bound to happen sooner or later, that's the direction this industry is heading in.UpInFlames

[QUOTE="Shame-usBlackley"]

[QUOTE="UpInFlames"]

As Steam has proven, you can get rid of used games and still be successful. Microsoft could pull it off if they set the MSRP at $10 lower than Sony and engage in an agressive digital distribution campaign with regular and compelling deals (up to 75% discounts on top titles). Publishers would be all over this, gamers would be more than willing to accept limited ownership in exchange for cheap games and Microsoft would be laughing all the way to the bank.

UpInFlames

Steam usage didn't involve buying a proprietary device, but instead, one most people already have in their homes. That's like saying that Apple could take over the console market because they've sold a bunch iOS games. If that is the route Microsoft wishes to pursue, they don't need to release a console.

Hm, I don't see how does that have anything to do with it. I mean, Valve certainly doesn't need to release a living room PC, but they're still doing it. Also, iOS games are just completely different, both regarding the design and pricing, and Apple itself is just so not into gaming. Steam and consoles are equals, it's the exact same games. Microsoft has a huge market share, why not utilize it? Then there's the huge marketing machine that Steam never had. I'm not saying that it's the exact same thing, but they could definitely pull it off.

I disagree. A game is a game is a game, especially since downloadable games have become a staple on consoles. What would be the gain in making a proprietary device that plays Steam games when there are, what, 200 million of them already installed in homes? What's the benefit of trying to own a space you already dominate by releasing hardware that duplicates the experience most people can already get through the PC?

I just don't think trying to lure a buyer in that already owns a PC to offer largely the same experience is going to be worthwhile or easy, just redundant and kind of dumb, to be honest. It would be like Honda releasing a car in a market they had already captured 98% of for no other reason than to make a buyer say, "Yay, I can buy a Honda, or just drive the one I just bought and am happy with."

Also, based on the first protoype of the Valve sponsored device, that shlt is gonna tank hard. A thousand bones just isn't gonna fly. Further, the latest report I'd read cited that only 60% or so of total households in the States (and Europe is about 70% I've heard) have broadband. So whatever 100% of the total potential base would be for a downloadable machine, cut 40% right off the top. It'd die harder than Mama Cass.

I disagree. A game is a game is a game, especially since downloadable games have become a staple on consoles. What would be the gain in making a proprietary device that plays Steam games when there are, what, 200 million of them already installed in homes? What's the benefit of trying to own a space you already dominate by releasing hardware that duplicates the experience most people can already get through the PC?

I just don't think trying to lure a buyer in that already owns a PC to offer largely the same experience is going to be worthwhile or easy, just redundant and kind of dumb, to be honest. It would be like Honda releasing a car in a market they had already captured 98% of for no other reason than to make a buyer say, "Yay, I can buy a Honda, or just drive the one I just bought and am happy with."

Also, based on the first protoype of the Valve sponsored device, that shlt is gonna tank hard. A thousand bones just isn't gonna fly. Further, the latest report I'd read cited that only 60% or so of total households in the States (and Europe is about 70% I've heard) have broadband. So whatever 100% of the total potential base would be for a downloadable machine, cut 40% right off the top. It'd die harder than Mama Cass.

Shame-usBlackley

No, not all games are the same. You can't compare a market where the games are mostly free or they cost $1 with Steam or consoles. Their design is also vastly different, they're played in tiny chunks, mostly on the go.

They are NOT owning that space, that's the living room space, the ease-of-use space. PC does NOT own that.

60-70% of broadband in US and Europe is still a huge market and remember that with digital they cut out the middleman (retail) who now get the biggest chunk of the profits, so they could easily recoup whatever marketshare is lost. How else do you think publishers can afford cutting game prices by 75% on Steam? Valve has long ago stated that they and third-party publishers actually make a BIGGER profit with these sales after which the baseline sales increase as well. And besides, broadband percentage is only going to increase as time goes by.

It would be the end of the Xbox brand, but Gamestop would be fine.SteveTabernacle

[QUOTE="Shame-usBlackley"]

I disagree. A game is a game is a game, especially since downloadable games have become a staple on consoles. What would be the gain in making a proprietary device that plays Steam games when there are, what, 200 million of them already installed in homes? What's the benefit of trying to own a space you already dominate by releasing hardware that duplicates the experience most people can already get through the PC?

I just don't think trying to lure a buyer in that already owns a PC to offer largely the same experience is going to be worthwhile or easy, just redundant and kind of dumb, to be honest. It would be like Honda releasing a car in a market they had already captured 98% of for no other reason than to make a buyer say, "Yay, I can buy a Honda, or just drive the one I just bought and am happy with."

Also, based on the first protoype of the Valve sponsored device, that shlt is gonna tank hard. A thousand bones just isn't gonna fly. Further, the latest report I'd read cited that only 60% or so of total households in the States (and Europe is about 70% I've heard) have broadband. So whatever 100% of the total potential base would be for a downloadable machine, cut 40% right off the top. It'd die harder than Mama Cass.

UpInFlames

No, not all games are the same. You can't compare a market where the games are mostly free or they cost $1 with Steam or consoles. Their design is also vastly different, they're played in tiny chunks, mostly on the go.

They are NOT owning that space, that's the living room space, the ease-of-use space. PC does NOT own that.

60-70% of broadband in US and Europe is still a huge market and remember that with digital they cut out the middleman (retail) who now get the biggest chunk of the profits, so they could easily recoup whatever marketshare is lost. How else do you think publishers can afford cutting game prices by 75% on Steam? Valve has long ago stated that they and third-party publishers actually make a BIGGER profit with these sales after which the baseline sales increase as well. And besides, broadband percentage is only going to increase as time goes by.

The PC owns the downloadable game space, which is the same type of offerings they would be putting out with a Steam or downloadable console type format.

And that is two different issues entirely. An attractive publishing model does not negate or nullify the fact that the potential base would be limited (drastically in some countries) by the availability of broadband. You are trying to come up with reasons around why people shouldn't say no, but that's the bottom line when earning customers: you have to take away ALL the reasons to say no. At the end of the day, it's going to be a VERY hard sell to get people to buy a console to play downloadable games that they can already play on their PC, assuming they have broadband to begin with. You forget that most people only buy one console to play games on -- historically that is the case -- if they already have a PC that can play those games, history says they will NOT buy a second version of that experience.

Time will tell.

[QUOTE="SteveTabernacle"]It would be the end of the Xbox brand, but Gamestop would be fine.donalbane

Those of you who think that a DD only future will be awesome on closed gaming platforms are in for a rude awakening. 

Gamestop doesn't need Microsoft products to survive.

Bigboi500

[QUOTE="Bigboi500"]

Gamestop doesn't need Microsoft products to survive.

Elann2008

I  can't count the number of times I watched someone trade in a bunch of current generation games towards an upcoming console. Darn it, there's another one of those positives everyone keeps overlooking. People can take last generation libraries and invest in next generation hardware when they otherwise couldn't or wouldn't.

As Steam has proven, you can get rid of used games and still be successful. Microsoft could pull it off if they set the MSRP at $10 lower than Sony and engage in an agressive digital distribution campaign with regular and compelling deals (up to 75% discounts on top titles). Publishers would be all over this, gamers would be more than willing to accept limited ownership in exchange for cheap games and Microsoft would be laughing all the way to the bank.

UpInFlames

[QUOTE="donalbane"][QUOTE="SteveTabernacle"]It would be the end of the Xbox brand, but Gamestop would be fine.Shinobi120

Those of you who think that a DD only future will be awesome on closed gaming platforms are in for a rude awakening. 

I'm aware that it's not going to be awesome. But it's the way this industry is going, and I don't see anything stopping it. 

*So far* though, I haven't had any problems with Steam. That could change of course. 

[QUOTE="Shinobi120"]

Gamestop has 5 years left, tops. Downloads/streaming are going to take over. Just look at Steam... Gamestop doesn't sell PC games for the most part anymore.donalbane

Those of you who think that a DD only future will be awesome on closed gaming platforms are in for a rude awakening. 

I'm aware that it's not going to be awesome. But it's the way this industry is going, and I don't see anything stopping it. 

*So far* though, I haven't had any problems with Steam. That could change of course.