Anyone heard this scuttlebutt?


They're in debt $148 million and have tried to sell the company with no takers.


Most gamers prefer a physical copy of their game but only 37% of purchased games are hard copies.


They also recently announced no refunds on preorders after a month, just store credit. This could be interpreted as a fear of a rush for refunds if they close down.

Yeah whoever posted that is an idiot.

I haven't seen anything in the distressed debt/bankruptcy world re Gamestop. I also think that they just announced a pretty sizable stock buyback (like $300mm worth). Perhaps follow-up on the B&I board where you might get better info.

PaulSimonsGhost said:

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Anyone heard this scuttlebutt?


They're in debt $148 million and have tried to sell the company with no takers.


Most gamers prefer a physical copy of their game but only 37% of purchased games are hard copies.


They also recently announced no refunds on preorders after a month, just store credit. This could be interpreted as a fear of a rush for refunds if they close down.

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Bolded text above.

If most gamers prefer physical copies, why are only 37% of purchased games hard copies? Stat seems contradictory.

Do we even have numbers from digital sales? I thought many companies were very protective of digital sales data.

I much prefer digital, but physical is almost always cheaper on consoles. Changing discs or cartridges sucks though.

Too bad you can't buy a steam version that works across all platforms.

You know, honestly I was lazy and just quoted this video's research as fact. They showed that 63% of games bought in 2018 were digital copies and then quoted a yearly report to investors from Gamestop that explained this was a reason for losses.


Personally I prefer digital copies, but I like the concept of a hard copy that I can trade in or buy used. Especially after buying games from playstation store that reveal themselves soon after as being boring or bad such as Fallout 76 or The Order 1886.

I know we have seen a huge influx of resumes from people at gamestop hq in Dallas in the last 3 months.

aggieforester05 said:

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mugwurt said:

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As a video game developer for 20 years, i say good riddance. Gamestop's entire business model is extremely anti-developer, i.e. aggressively selling used copies of games within a week of release. Gamestop makes huge margins on used game sales, while the developer sees zero dollars.

Games shifting to predominantly digital distribution was an inevitable outcome. It is more convenient for consumers, and it is a big plus for game developers, especially small-medium sized independent developers who don't have the marketing budget to buy shelf space in brick and mortar stores.

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Hopefully if that's true, prices will start to come down to earth if you eliminate the used market. Almost every new game starts at $60 now and very few live up to that value.

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I doubt you will see that happen, certainly not on the more high profile games. If anything, I wouldn't be surprised to see prices go up when the next generation of consoles come out, as the $60 price point has been static for many years now, while dev budgets/costs are constantly increasing. But I agree with your point about most $60 games not being worth the cost. I rarely buy a $60 game at release, opting instead to wait for the inevitable price reduction which usually happens within a couple months.

You do see alot of "tier 2" games and indie games selling for $20-$40, some of which provide tremendous value for the price.

As a counter point to the potential of increasing retail game prices, I think you are going to see an increasing trend from the big game publishers creating more games using a GaaS (Games as a Service) biz model. The enormous success of Apex, Fortnite, etc., will likely result in seeing more games sold at a reduced initial price, if not free, to lower the barrier to entry and attract as large a player base as possible, which will then be monetized by micro-transactions.

This only really works with multi-player based games though. The big budget, single-player games will still be sold at a premium.

wangus12 said:

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aggieforester05 said:

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I much prefer digital, but physical is almost always cheaper on consoles. Changing discs or cartridges sucks though.

Too bad you can't buy a steam version that works across all platforms.

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The digital games never same to get marked down after release. For instance, I just typed in Assassin's Creed on Microsoft's store and the two games prior to the most recent one are still listed at $59. I know I can go into a Gamestop and buy it for probably less than $30.

I still like the physical copies. You can always get them way cheaper.

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Digital stores typically are on par with B&M pricing for new retail copies. Used copies will be a bit cheaper.

That would be an interesting thought for steam. Using the market to offload unwanted games to willing buyers at a discount.

It'll go the way of CD Warehouse, the only question is when.

mugwurt said:

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aggieforester05 said:

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mugwurt said:

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As a video game developer for 20 years, i say good riddance. Gamestop's entire business model is extremely anti-developer, i.e. aggressively selling used copies of games within a week of release. Gamestop makes huge margins on used game sales, while the developer sees zero dollars.

Games shifting to predominantly digital distribution was an inevitable outcome. It is more convenient for consumers, and it is a big plus for game developers, especially small-medium sized independent developers who don't have the marketing budget to buy shelf space in brick and mortar stores.

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Hopefully if that's true, prices will start to come down to earth if you eliminate the used market. Almost every new game starts at $60 now and very few live up to that value.

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I doubt you will see that happen, certainly not on the more high profile games. If anything, I wouldn't be surprised to see prices go up when the next generation of consoles come out, as the $60 price point has been static for many years now, while dev budgets/costs are constantly increasing. But I agree with your point about most $60 games not being worth the cost. I rarely buy a $60 game at release, opting instead to wait for the inevitable price reduction which usually happens within a couple months.

You do see alot of "tier 2" games and indie games selling for $20-$40, some of which provide tremendous value for the price.

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Revenues have also increased over that span despite the static purchase cost. That the price point hasn't changed in so long + the ever growing number of special editions at release of major games (to take advantage of fans that are willing to pay more for additional swag) suggests to me that publishers don't think increasing the price would increase revenue.

wangus12 said:

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aggieforester05 said:

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I much prefer digital, but physical is almost always cheaper on consoles. Changing discs or cartridges sucks though.

Too bad you can't buy a steam version that works across all platforms.

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The digital games never same to get marked down after release. For instance, I just typed in Assassin's Creed on Microsoft's store and the two games prior to the most recent one are still listed at $59. I know I can go into a Gamestop and buy it for probably less than $30.

I still like the physical copies. You can always get them way cheaper.

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Yup. I've gotten the Gold Steelbook Editions of the last 2 AC games at the same or a lower price than the normal digital editions. I waited awhile to buy both, but the digitals were still full price.

Digital can be convenient, but I'm not usually switching back and forth between games constantly. I've been playing AC Odyssey since January and will continue to play it for awhile. I played AC Origins
for 4 months. It's not a major inconvenience to change a disc once every 4 months. It also came with the Season Pass, a remastered edition of AC3, etc.

wangus12 said:

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aggieforester05 said:

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I much prefer digital, but physical is almost always cheaper on consoles. Changing discs or cartridges sucks though.

Too bad you can't buy a steam version that works across all platforms.

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The digital games never same to get marked down after release. For instance, I just typed in Assassin's Creed on Microsoft's store and the two games prior to the most recent one are still listed at $59. I know I can go into a Gamestop and buy it for probably less than $30.

I still like the physical copies. You can always get them way cheaper.

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This. I just pulled up Super Mario Odyssey as an example. Download... $60. Physical copy, half that. It was released 18 months ago so why the day 1 pricing for the download?

The other reason I prefer physical copies is because I already lost a ton of downloaded stuff when a Wii crapped out last year. There was no way to recover any of it while my discs (and ROMs...) soldier on.

Yes, the GS close to us in Sugar Land closed last week

wangus12 said:

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aggieforester05 said:

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I much prefer digital, but physical is almost always cheaper on consoles. Changing discs or cartridges sucks though.

Too bad you can't buy a steam version that works across all platforms.

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The digital games never same to get marked down after release. For instance, I just typed in Assassin's Creed on Microsoft's store and the two games prior to the most recent one are still listed at $59. I know I can go into a Gamestop and buy it for probably less than $30.

I still like the physical copies. You can always get them way cheaper.

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Digital copies definitely get marked down. Less than a month after release Shadow of the Tomb Raider was going for 50% off on steam. Deal only lasted a couple of days, but it went on sale again for the same price a month later.

The Fife said:

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wangus12 said:

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aggieforester05 said:

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I much prefer digital, but physical is almost always cheaper on consoles. Changing discs or cartridges sucks though.

Too bad you can't buy a steam version that works across all platforms.

---

The digital games never same to get marked down after release. For instance, I just typed in Assassin's Creed on Microsoft's store and the two games prior to the most recent one are still listed at $59. I know I can go into a Gamestop and buy it for probably less than $30.

I still like the physical copies. You can always get them way cheaper.

---

This. I just pulled up Super Mario Odyssey as an example. Download... $60. Physical copy, half that. It was released 18 months ago so why the day 1 pricing for the download?

The other reason I prefer physical copies is because I already lost a ton of downloaded stuff when a Wii crapped out last year. There was no way to recover any of it while my discs (and ROMs...) soldier on.

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Gotta move that product to get it off the shelf and make room for the new stuff when it comes to market. Difference between brick and mortar inventory churning vs. a digital market place where "shelf space" costs nothing.

Also, keeping them at full price online indicates that they believe the convenience factor or impulse buy scenarios make up for the need to discount. It could also be indicative of a way to keep profits higher since they know the B&M revenue stream is declining.

AggieFanatic09 said:

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The Fife said:

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wangus12 said:

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aggieforester05 said:

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I much prefer digital, but physical is almost always cheaper on consoles. Changing discs or cartridges sucks though.

Too bad you can't buy a steam version that works across all platforms.

---

The digital games never same to get marked down after release. For instance, I just typed in Assassin's Creed on Microsoft's store and the two games prior to the most recent one are still listed at $59. I know I can go into a Gamestop and buy it for probably less than $30.

I still like the physical copies. You can always get them way cheaper.

---

This. I just pulled up Super Mario Odyssey as an example. Download... $60. Physical copy, half that. It was released 18 months ago so why the day 1 pricing for the download?

The other reason I prefer physical copies is because I already lost a ton of downloaded stuff when a Wii crapped out last year. There was no way to recover any of it while my discs (and ROMs...) soldier on.

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Gotta move that product to get it off the shelf and make room for the new stuff when it comes to market. Difference between brick and mortar inventory churning vs. a digital market place where "shelf space" costs nothing.

Also, keeping them at full price online indicates that they believe the convenience factor or impulse buy scenarios make up for the need to discount. It could also be indicative of a way to keep profits higher since they know the B&M revenue stream is declining.

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This exactly. Retail space costs money. Digital space is much cheaper and virtually unlimited.

The Fife said:

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wangus12 said:

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aggieforester05 said:

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I much prefer digital, but physical is almost always cheaper on consoles. Changing discs or cartridges sucks though.

Too bad you can't buy a steam version that works across all platforms.

---

The digital games never same to get marked down after release. For instance, I just typed in Assassin's Creed on Microsoft's store and the two games prior to the most recent one are still listed at $59. I know I can go into a Gamestop and buy it for probably less than $30.

I still like the physical copies. You can always get them way cheaper.

---

This. I just pulled up Super Mario Odyssey as an example. Download... $60. Physical copy, half that. It was released 18 months ago so why the day 1 pricing for the download?

The other reason I prefer physical copies is because I already lost a ton of downloaded stuff when a Wii crapped out last year. There was no way to recover any of it while my discs (and ROMs...) soldier on.

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I don't know how Nintendo handles digital purchases/library, but I know your PS4 and Xbox accounts have record of the games you have purchased digitally, and you can re-download them at any time.

benMath08 said:

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The Fife said:

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wangus12 said:

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aggieforester05 said:

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I much prefer digital, but physical is almost always cheaper on consoles. Changing discs or cartridges sucks though.

Too bad you can't buy a steam version that works across all platforms.

---

The digital games never same to get marked down after release. For instance, I just typed in Assassin's Creed on Microsoft's store and the two games prior to the most recent one are still listed at $59. I know I can go into a Gamestop and buy it for probably less than $30.

I still like the physical copies. You can always get them way cheaper.

---

This. I just pulled up Super Mario Odyssey as an example. Download... $60. Physical copy, half that. It was released 18 months ago so why the day 1 pricing for the download?

The other reason I prefer physical copies is because I already lost a ton of downloaded stuff when a Wii crapped out last year. There was no way to recover any of it while my discs (and ROMs...) soldier on.

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This is a Nintendo problem not a digital problem.

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Nintendo has been woefully behind the times on everything "online" or "digital".

Gamestop isn't even worth it on their used games anymore. The used games they get a week after release they resell for 55 dollars, instead of 60 new, why even bother? Most of the time the best deals i get on physical games is best buy or amazon for brand new games a few weeks after release.

Jasomania said:

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Gamestop isn't even worth it on their used games anymore. The used games they get a week after release they resell for 55 dollars, instead of 60 new, why even bother? Most of the time the best deals i get on physical games is best buy or amazon for brand new games a few weeks after release.

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Selling used games for a whopping $5 less than new copies within the first week of release has been their strategy for a long time. Most consumers don't realize that by saving $5 they are giving Gamestop huge profit and giving the developers nothing.

I thought it just moved to a new location (that was the email that I was sent). Are you talking about the location near the highway 6 and 90 intersection?

they've been slowly going out of business for about 5 years now. only a matter of time.