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> I don't think this will happen. Do you mean you don't think they'll compete with Twitch, or you don't think they'll compete with Steam and Amazon? Personall
by ludocode 6y ago
> I don't think this will happen.
Do you mean you don't think they'll compete with Twitch, or you don't think they'll compete with Steam and Amazon?
Personally I think investing in GME today is no different than investing in Blockbuster ten years ago. Competing with Steam is a terrible idea. EA tried it with Origin and despite having huge exclusive franchises, they're essentially throwing in the towel by abandoning the Origin branding and moving their newest titles back to Steam. There are also few physical goods to ship anymore so the experience in selling pet supplies online is irrelevant. Something like 80% of PS5s sold are the digital-only model; they don't even have a disk drive (and 99% of modern PCs don't have one either.)
Most of GameStop's profit was on used games. A game would get purchased, completed in a few days, then sold back to GameStop. When GameStop re-sells it as used, that's pure profit; the original publisher doesn't get a cut. Rinse and repeat a few times and within a few weeks of the launch of a game, GameStop has made more money off of it than the game developers. This is no longer possible with digital game sales. These games are locked to accounts and cannot be individually transferred. (And if you think GameStop's digital storefront will support game resales to try to capture this profit, no publisher in their right mind would publish their games on it!)
- Judgmentality 6y ago> Do you mean you don't think they'll compete with Twitch, or you don't think they'll compete with Steam and Amazon? I do not think Gamestop is going to compete with twitch. I will be very surprised if they do not try to compete with Steam.
- prepend 6y agoThis is just crazy though as GameStop has no demonstrated capabilities or plan to compete with Steam. They don’t make good software, they don’t have content or publishing experience. I mean they can say they want to, so can McDonalds. But their plan is magical thinking and not sure why folks fall for this. The worst but though is that they have a terrible reputation with gamers. Every gamer I know hates them. Some shop there like some tolerate Comcast, but they don’t have a fan base.