yreeg / Member

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Ultimate Fighter--The retailers

Niche video game retailer Gamestop watched their stock shares fall 8.26 percent this week. They also watched as Wal-mart dove in for the kill, slashing $10 off the most popular games on various consoles including PC. I guess its beginning to look a lot like Christmas! Over the next few weeks, Wal-Mart is gong to slash the price on popular games such as Rock Band: Beatles for the Wii, Left 4 Dead 2 for the Xbox 360 and will even offer shoppers who buy a Wii in its stores for $199 a $50 Wal-Mart gift card. I'm sure other titles are included in the price chop as well. But for every action there is an opposite and equal reaction. But were will the opposite (see bad) reaction occur? Following the line of money, it only makes sense that if retailers are selling the game for less, they might put pressure on game developers to charge less for the game. Less money for game development could mean games that have less time and thought put into their development. It could, but I doubt it will. The gaming niche is still a huge sector of the entertainment market, and even though retailers are scraping for bargain hungry shoppers this season, I don't think this 25 day retailer "Thunderdome" is going to impact the way games are made or alter the quality of products yet to come. I'd suspect Wal-Mart will take a loss on its video games this year in hopes that folks will buy more mundane (and marked up) items while they are shopping. Rest assured, Wal-Mart will not lose money. In addition, Gamestop will have to respond. I could see them leaving the prices of their new games at a slightly discounted price, while they drop their inventory of used games well below that of Wal-Mart prices. Again creating competition and choice. Regardless of what happens, I believe gamers will win out in the short run and the long run.