5 ms·

I have come to the conclusion that it is very hard for a specialty businesses to survive in the era of Walmart and Amazon - which does not bode well long term f

I have come to the conclusion that it is very hard for a specialty businesses to survive in the era of Walmart and Amazon - which does not bode well long term for places like Barnes & Noble and Gamestop. I hope I am wrong.

zabuni 9y ago
At least for Gamestop, you're probably not wrong. Amazon Prime gets you new video games at 20% off MSRP. That's cheaper than what the distributor sells them for.
- hn_user2 9y ago
  I think GameStop makes most of its money buying trade-ins. Perhaps they are more in the pawn shop business than the video game business?
  - midnightclubbed 9y ago
    Go into your local Gamestop for a copy of Destiny 2 and see how hard they try to push you into buying a pre-owned (used) copy for $55 over the new copy for $60. Their trade-in value for Destiny 2 is $24 (in store credit) and their pre-owned purchase price is $55. No wonder the sales staff force the pre-owned games over new. Gamestop gave the middle finger to game producers when they realized how selling used games was way more profitable than new. When they file for chapter 11 in the near future they will claim downloadable games and competition from Amazon killed their business rather than their greed causing their suppliers to find alternative sales channels.
- swang 9y ago
  i'm on a slow connection so i can't find the links/news but i don't think that's true anymore. they certainly have restricted it. before it was including collectors editions. then it was only on preorders. not sure about it now but it's definitely not all just 20% discounted anymore.
mywittyname 9y ago
I still go to B&N because I like to drink coffee and read magazines. I don't pay for the magazines, but I still spend like $10 on coffee and such. Gamestop has no hope for a continued existence with their current business model. Frankly, I'm surprised they are still around.
- Larrikin 9y ago
  It's crazy to me that nearly all brick and mortar stores that sell video games took out their biggest draw, in store game demos. It was a huge draw as a kid, I'd want to be in the store even if I didn't expect to get anything, but I always knew what I wanted next since I had played the demo. Do they not exist anymore because most kids are satisfied watching others play on the internet?
  - yellow_postit 9y ago
    Demos for the most part have fallen by the wayside and when they do exist they often come out months after the official launch. The one platform I see consistent demos on however is Nintendo DS.
nostrebored 9y ago
For large scale specialty businesses that do not have a unique competitive advantage due to their specificity? Sure! And they should go. These stores are all middlemen and if it's their sole function, they should expect to compete on efficiency. However, there are tons of smaller stores that I still frequent due to atmosphere, niche goods, or a niche appeal. For example, friendly local game stores that have excellent customer service or local grocery stores that actually source their products using local connections. One provides an atmosphere that keeps it busy every time that I've been and the other provides goods that I can't find anywhere else, unless I'm getting a substitute good. Brick and mortar stores that lack either should expect to go under, and hopefully be replaced by higher quality stores.
martinald 9y ago
I imagine GameStop does very well out of their trade in business. Does Amazon do that in the US?
- thefalcon 9y ago
  Yeah, and Amazon often offers better prices with instant gift cards and several days grace period to ship your games to them on their dime. GameStop is only a good deal a few times a year during specific sales.

zabuni 9y ago

At least for Gamestop, you're probably not wrong. Amazon Prime gets you new video games at 20% off MSRP. That's cheaper than what the distributor sells them for.

hn_user2 9y ago
I think GameStop makes most of its money buying trade-ins. Perhaps they are more in the pawn shop business than the video game business?
- midnightclubbed 9y ago
  Go into your local Gamestop for a copy of Destiny 2 and see how hard they try to push you into buying a pre-owned (used) copy for $55 over the new copy for $60. Their trade-in value for Destiny 2 is $24 (in store credit) and their pre-owned purchase price is $55. No wonder the sales staff force the pre-owned games over new. Gamestop gave the middle finger to game producers when they realized how selling used games was way more profitable than new. When they file for chapter 11 in the near future they will claim downloadable games and competition from Amazon killed their business rather than their greed causing their suppliers to find alternative sales channels.
swang 9y ago
i'm on a slow connection so i can't find the links/news but i don't think that's true anymore. they certainly have restricted it. before it was including collectors editions. then it was only on preorders. not sure about it now but it's definitely not all just 20% discounted anymore.

mywittyname 9y ago

I still go to B&N because I like to drink coffee and read magazines. I don't pay for the magazines, but I still spend like $10 on coffee and such. Gamestop has no hope for a continued existence with their current business model. Frankly, I'm surprised they are still around.

Larrikin 9y ago
It's crazy to me that nearly all brick and mortar stores that sell video games took out their biggest draw, in store game demos. It was a huge draw as a kid, I'd want to be in the store even if I didn't expect to get anything, but I always knew what I wanted next since I had played the demo. Do they not exist anymore because most kids are satisfied watching others play on the internet?
- yellow_postit 9y ago
  Demos for the most part have fallen by the wayside and when they do exist they often come out months after the official launch. The one platform I see consistent demos on however is Nintendo DS.

nostrebored 9y ago

For large scale specialty businesses that do not have a unique competitive advantage due to their specificity? Sure! And they should go. These stores are all middlemen and if it's their sole function, they should expect to compete on efficiency. However, there are tons of smaller stores that I still frequent due to atmosphere, niche goods, or a niche appeal. For example, friendly local game stores that have excellent customer service or local grocery stores that actually source their products using local connections. One provides an atmosphere that keeps it busy every time that I've been and the other provides goods that I can't find anywhere else, unless I'm getting a substitute good. Brick and mortar stores that lack either should expect to go under, and hopefully be replaced by higher quality stores.

martinald 9y ago

I imagine GameStop does very well out of their trade in business. Does Amazon do that in the US?

thefalcon 9y ago
Yeah, and Amazon often offers better prices with instant gift cards and several days grace period to ship your games to them on their dime. GameStop is only a good deal a few times a year during specific sales.