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Op Ed

Kotaku - Gaming's Biggest Problem Is That Nobody Wants To Talk.
The biggest problem in gaming today is that the gaming industry thinks we're all out to get them. They think gamers are the enemy, a group that needs to be treated with disdain and avoided whenever possible. They think the only way to fool us into buying their products is to cover everything in a shroud of secrecy, only drip-feeding us pretty trailers and juicy soundbites during carefully-tailored marketing campaigns. They think we should just sit there and lap it up.

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29. Re: Op Ed Aug 4, 2012, 12:42 Agent.X7
 
I'm not sure how dropping prices would decreased used game sales. You'd have to drop your used prices as well, so they'd just continue to buy used. Like you said, some people buy whatever is cheapest. Especially when there is no otherwise redeeming value in buying new.

Well, it's simple, really. Customers wouldn't factor into it so much as my bottom line.

I'm an independent game store in a small town, surrounded by other small towns. The closest Gamestop is 35 minutes to the West, or 45 minutes to the East, and the small towns to the South of me have an even longer drive to get there. So I rely on the fact that I am more convenient, and cheaper, than Gamestop.

However, I do not have the bottomless pockets of Gamestop. New games generally cost me $5 less than they cost customers. When you factor in shipping, I don't make much at all on a new game. I don't have the volume of customers necessary to sustain my business based on new item sales. Even if it was the full $5 profit on each item, I couldn't pay my lease, let alone every other bill.

Used games? That's where my profit margin lies. Generally I pay out 40 to 50% of what I can sell an item for. Now, that rocks the profit for used games going at $49.99. (An example, as most used games are cheaper.) However, if NEW games sold at $40? The most I could charge for a used copy would be $39.99, and most games would fall well below that. The smaller the profit for each used game, the less incentive for me to remain open. I mean, making $20 on a used game that just came out? Great! Making $5? Urg. I'm right back to the crap profit that new games bring, and it's not enough to keep my doors open.

I mean, that's just my take on it. I have a degree in business, so it's a pretty educated guess, but still just a guess. Keep in mind that I also run a game store because of my love for games and my desire to not work for other people, so others may have different motivations. I could certainly make a lot more money doing something else, but I like this. And liek I said, Gamestop is a major force in the industry, so they have different numbers and could probably still turn a profit. (25 cents for my week old copy of Dragons Dogma 6? Sweet!)
 
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Previous Post Next Post Reply Quote Edit Delete Report
 
    Date Subject Author
  1. Aug 3, 11:50 Re: Op Ed MajorD
  2. Aug 3, 12:06  Re: Op Ed Graham
  4. Aug 3, 12:31   Re: Op Ed Prez
  7. Aug 3, 12:59    Re: Op Ed Bhruic
  30. Aug 4, 16:38   Re: Op Ed yonder
  3. Aug 3, 12:27 Re: Op Ed Silicon Avatar
  5. Aug 3, 12:38 Re: Op Ed NegaDeath
  21. Aug 3, 17:17  Re: Op Ed Wowbagger_TIP
  23. Aug 3, 18:03   Re: Op Ed Ray Ban
  6. Aug 3, 12:50 Re: Op Ed Creston
  13. Aug 3, 13:58  Re: Op Ed Graham
  14. Aug 3, 15:23   Re: Op Ed Agent.X7
  15. Aug 3, 15:41    Re: Op Ed avianflu
  8. Aug 3, 13:05 Re: Op Ed Bhruic
  9. Aug 3, 13:25  Re: Op Ed space captain
  10. Aug 3, 13:32   Re: Op Ed Fion
  11. Aug 3, 13:39    Re: Op Ed NKD
  12. Aug 3, 13:50     Re: Op Ed Beamer
  16. Aug 3, 16:14 Re: Op Ed Tumbler
  17. Aug 3, 16:25  Re: Op Ed Beamer
  18. Aug 3, 16:28   Re: Op Ed Beamer
  22. Aug 3, 17:59   Re: Op Ed Tumbler
  26. Aug 3, 19:28    Re: Op Ed Beamer
  20. Aug 3, 16:53  Re: Op Ed NKD
  25. Aug 3, 19:05   Re: Op Ed Agent.X7
  27. Aug 3, 21:08    Re: Op Ed NKD
>> 29. Aug 4, 12:42     Re: Op Ed Agent.X7
  24. Aug 3, 18:05  Re: Op Ed Flatline
  31. Aug 4, 16:43   Re: Op Ed yonder
  32. Aug 4, 17:10    Re: Op Ed Tumbler
  33. Aug 5, 07:47     Re: Op Ed Prez
  19. Aug 3, 16:29 Re: Op Ed eunichron
  28. Aug 4, 02:17  Re: Op Ed Jerykk


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