GameStop & EB Games Merging (GameStop buys Electronics Boutique for $1.44 billion)

[quote name='cdeener']Thanks again, Shrike because I didn't have the slideshow viewed because of the settings on the Internet Explorer I use at work.[/QUOTE]

I grabbed pics of the slides, though I'm a little wary of posting them. Nothing hugely proprietary, though they were protected from doing ALT-C and right-clicks. I did find my way to get 'em, however.
 
[quote name='shrike4242']'

I grabbed pics of the slides, though I'm a little wary of posting them. Nothing hugely proprietary, though they were protected from doing ALT-C and right-clicks. I did find my way to get 'em, however.[/QUOTE]

you can generally circumvent right click protection very easily. The java warnings come up when you put the button down, but the menu doesnt pop up until you release the button.

Right click the picture. Hit enter to remove the 'I wont take this' box. Release the button. :mrgreen:
 
[quote name='smalien1']Maybe the stores'll be mixed between the two, they could call it GameGames!!
Does anyone notice that gamestops are darker than EB's? Same relationship between B&N and Borders.... I smell a conspiracy.[/QUOTE]


I like EB Spot better!
 
Shrike4242 was correct they are talking about closing EB by Labor Day. So if you have store credit I suggest that you find away to get rid of by this date or just wait to see.
 
[quote name='supermariomelee']That's what I'm wondering from the story, doesn't really tell who started the talks or who it'll benefit(although from the name, I'll say Gamestop). But this better not affect the 25% on preowned, otherwise I'll start shopping at Game Crazy.

It also better not affect EB selling SNES & NES games, cause I'll be pissed if they phase those out.

Those wondering that the stores might close, here's a weird one. When Gamestop bought Funcoland, which there was one of each in the mall I go to, they both stayed open. Check over the weekend and both are still open and the Funcoland store still has their name(supposedly they were supposed to switch to Gamestop), with Funcoland on the 2nd floor and Gamestop on the 1st.[/QUOTE]

The Funcoland here was changed to Gamestop.
 
One word: fuck

EB just swept the floor clean against all other competitors in the Cheapy Awards, and I have ALWAYS had great satisfaction for their pre-played game selections and deals that we CAGers get. I am really disappointed by this turn of events.
 
[quote name='TMac1']i have like $600 in eb gift card. is that going to be still usable?[/QUOTE]

I'd plan on using it in the next few months. I have $100 in credit I'm going to be using shortly myself.
 
I remember when EB and Gamestop were both trying to buyout Funco, Babbages, and Software Etc. Atleast here in Ventura county, when Gamestop did buy out those three, the Software Etc closed (a month before the xbox came out), and nothing went up in its place. At the time, only a EB was in the mall (still the only one). Then a Funcoland in Camarillo turned into a GS. Thats it. So far, I have 4 EB's within a 15 mile radius, and the closest GS is 28 miles away. I'm actually looking forward to ateast 1 GameStop as they sell much more used DVDs.
 
I wonder how all of this will effect the videogame market itself.

Will this hurt or help the small publisher?
Does a global development plan mean one could expect to see import games start to enter the supply chain of local stores and the website? If so, could this be profitable for them?
If it does happen to be profitable, would this lead to a more "world market concious" group of developers that make game intented for multiple languages and regions at the same time?
 
[quote name='supermariomelee']That's what I'm wondering from the story, doesn't really tell who started the talks or who it'll benefit(although from the name, I'll say Gamestop). But this better not affect the 25% on preowned, otherwise I'll start shopping at Game Crazy.

It also better not affect EB selling SNES & NES games, cause I'll be pissed if they phase those out.

Those wondering that the stores might close, here's a weird one. When Gamestop bought Funcoland, which there was one of each in the mall I go to, they both stayed open. Check over the weekend and both are still open and the Funcoland store still has their name(supposedly they were supposed to switch to Gamestop), with Funcoland on the 2nd floor and Gamestop on the 1st.[/QUOTE]

I have a feeling that where there's overlap, they'll try to make it more efficient, and where they don't, they'll keep. Just a guess.

Very weird about a Funcoland and GS in the same mall space. I bet stuff like that stops happening. As far as I know, all of the major malls around here have a GS & EB in-building, though usually on opposite sides of the mall. From the conference call, I'd expect them to close one of them down.
 
Mmm...synergies. As in, merge with your competition and syphon more money out of the consumer.

Likely the single EB that I've got won't be closing, although it will suck that it's called GameStop. There are a billion GS's around and most of them suck. Either they've got a crappy selection, or most of the games are disc only. =( The EB promotions lately have been really sweet, and their cheap new games have been great.
 
[quote name='JSweeney']I wonder how all of this will effect the videogame market itself.

Will this hurt or help the small publisher?
Does a global development plan mean one could expect to see import games start to enter the supply chain of local stores and the website? If so, could this be profitable for them.
If it does happen to be profitable, would this lead to a more "world market concious" group of developers that make game intented for multiple languages and regions at the same time?[/QUOTE]

With the GS president's stressing, more than once, about the growth opportunities that they seemed to miss in the international market that EB is getting 30% of their business of, and growing, that I'd like to hope it'll make them more world-market friendly.
 
[quote name='smalien1']So edge cards are worthless or not? ( I mean discount not credit)[/QUOTE]

I got a feeling that the Gamestop & EB cards will be merged and when you buy one, you get the Game Informer subscription.
 
Being that its April, and this happens in EARLY 2006, most Edge cards will be close to expiration. My guess, they either combine, or do away with Edge completly (meaning no longer offering it starting next week or something)
 
In the long run this is definetly not good for us gamers, but I guess we just have to wait and see first if we can still benefit from this deal.
 
[quote name='shrike4242']Correct. Those are much better pics than I snapped of the slides, and if they're posted on the website in a PDF, I'll just toss my copies.[/QUOTE]

Your welcome, Shrike4242. For posting about the discussion during the call I am glad to help you get a better view of the slideshow.
 
[quote name='epobirs']Please, that is hardly the source for a company's honest self-assessment.

It isn't hard to works out. A new game selling for $50 has a profit measured in coinage after wholesale cost, location costs, utilities, and personnel are factored. Compare that to a game game purchased for $3 and sold for $15. Even after the operational costs you're still looking at a 400% margin vs. one of well under 10%. A fair stack of new games have to be sold to match the profits from a single used game sale.

The most profitable items in a highly competitive business can be surprising. The supermarket may push the haburger in their ad but the pack of gum picked up on whim at the counter can be the item with the highest margin on the receipt. Many eons ago, working in computer stores, we would have prices on printers that were competitive with the big chains and mail order advertisers. It was that or die. There were zero money in the printer sale. But the $3 box of paper we sold with the printer for $20 was very profitable, as was the cable. The big ticket item was there solely to make the customer need the other stuff, which is what made the business viable.

If EB and GS dealt solely in new games they'd have died in the 90's. There is a reason they started dealing in used games at that time. The pressure from big chain stores was overwhelming their strength in customer service. They noticed that many independents prospered solely on the used game market and saw the writing on the wall.

The problem is used products are regarded as a shabby business. If you ask a car dealer what business he's in, he'll show you his brand's flashiest new model. If you ask him where he makes his money he'll show you the used car section of the lot.[/QUOTE]

You just don't lie on a 10-K. You don't even stretch the truth on one of those things in this day and age post Sarbanes-Oxley. Jail time isn't appealing to anyone. That said, I'm not arguing that selling used games have a lesser profit margin. It's obvious that you get a bigger return selling a used game. I just find it incredibly hard to believe that the company on the whole makes a majority of its annual revenue from selling used games - especially when it is not called out in the annual report.

Plus, there is a certain stigma associated with buying a used game - Joe Consumer just doesn't do it because he only buys a few games a year. Parents and friends who buy gifts are also unlikely to buy used either. Enthusiasts like us (who are far far far in the minority) are more willing to buy used games because we want to play many more during the course of the year and it's just a matter of affordability. I'm willing to bet that even if EB has to sell 10 new copies of something to equal the profit from selling one used game, it easily does so - especially with the giant numbers games like GTA and Madden routinely get.
 
I'm sure it's been said, but I think this is the end of a lot of the cheap ass deals we've been finding.

Damn it.

Not sure if it's been asked yet, but how is this going to affect CAG?
 
[quote name='CheapyD']You have no idea what changes, if any, there will be. They may choose to keep the store brands completely seperate.

Obviously, this does not seem good for gamers, but you certainly can't assume specific problems like that at this time.[/QUOTE]

yeah, i mean maybe the best of both worlds will merge... i mean you cant assume the worst (although its easier to) but maybe there will still be 25% offline and 5 dollar edge cards, retro games and the such.... maybe...
 
Well this deal is kind of funny because in one area near me there is two EB's and one GS within five blocks of each other. So, by GS owning all of them I wonder which of the three will be getting shut down.

I should mention that one EB and one GS are located in a mall and the other EB is located in a strip mall a couple of blocks away.

I also will have fun today when I get off of work because there is a GS like three blocks away and I will ask how some of the employees feel about how they are going to be merged with EB.

I'll find out how some of my people at EB feel when I go up there later this week.
 
It must have been the TRU clearance and trade 2 for $10 deal that killed EB. The credit on the EB cards are worthless now!!! Wouldn't that be funny?
 
[quote name='Gothic_Walrus']I'm sure it's been said, but I think this is the end of a lot of the cheap ass deals we've been finding.

Damn it.

Not sure if it's been asked yet, but how is this going to affect CAG?[/QUOTE]
My guess is that the main purpose of this merger is so they could finally get enough capital together to make a purchase offer on CAG ;)

Honestly, I have no idea how this will affect CAG or even if it will affect CAG at all.
I do have my own surprises up my sleeve, but they won't be revealed for a few months.
 
[quote name='javeryh']Plus, there is a certain stigma associated with buying a used game - Joe Consumer just doesn't do it because he only buys a few games a year. Parents and friends who buy gifts are also unlikely to buy used either.[/QUOTE]

Bull. Look at the number of CAGs who WON'T buy used because they want everything in perfect condition. The average consumer is going to look at price, and if EB/GS offers them a used game for $10-$15 less than a new one, with a 'guaranteed to work' clause, they will jump on it. About the only time I could see the new game selling more over the used is when the price difference is only $3-$5. Even then it won't matter to the parent who is just trying to please their kid with as little expenditure as possible.
 
[quote name='CheapyD']I do have my own surprises up my sleeve, but they won't be revealed for a few months.[/QUOTE]

By sleeve I assume you really mean 'hidden cybernetic compartment.'
 
[quote name='PsyClerk'] About the only time I could see the new game selling more over the used is when the price difference is only $3-$5. Even then it won't matter to the parent who is just trying to please their kid with as little expenditure as possible.[/QUOTE]

Which is exactly the price difference between a $50 new game its a $44.99 EB/GS used equivilent.
 
Well, with the merger you know they are going to have to cut locations.
As it stands right now, there is an intersection near me that has an EB or a Gamestop on each (!!!) corner. It's just ridiculous.
 
[quote name='PsyClerk']Bull. Look at the number of CAGs who WON'T buy used because they want everything in perfect condition. The average consumer is going to look at price, and if EB/GS offers them a used game for $10-$15 less than a new one, with a 'guaranteed to work' clause, they will jump on it. About the only time I could see the new game selling more over the used is when the price difference is only $3-$5. Even then it won't matter to the parent who is just trying to please their kid with as little expenditure as possible.[/QUOTE]

If they offered that, I'd jump on that. However, I'm not going to jump on a 5 dollar price difference where I'm expected to pay another 2 dollars to guarentee that I don't get stuck with a scratched to hades piece of garbage.
 
[quote name='jngx80']It must have been the TRU clearance and trade 2 for $10 deal that killed EB. The credit on the EB cards are worthless now!!! Wouldn't that be funny?[/QUOTE]

I do wonder if the constant competition/undercutting was finally deemed too expensive by the Gamestop folks. "EB's doing Trade 2 Get $10? We'll do Trade 3 Get 30%!" ... even though, I'd imagine, that starts to really cut into margins. But if you don't compete, you lose the cream-of-the-crop trade-ins and customers to your competitor. Solution? Buy 'em out.
 
[quote name='CheapyD']Which is exactly the price difference between a $50 new game its a $44.99 EB/GS used equivilent.[/QUOTE]

Right, those are what I had in mind when I made the statement. But also keep in mind that if you have a discount card, you go from saving $5 to saving $10.
 
[quote name='PsyClerk']Right, those are what I had in mind when I made the statement. But also keep in mind that if you have a discount card, you go from saving $5 to saving $10.[/QUOTE]

Actually though, wouldn't it be more like $9.50 and not $10?
 
[quote name='CheapyD']My guess is that the main purpose of this merger is so they could finally get enough capital together to make a purchase offer on CAG ;)

Honestly, I have no idea how this will affect CAG or even if it will affect CAG at all.
I do have my own surprises up my sleeve, but they won't be revealed for a few months.[/QUOTE]

If that isn't ominous, I sure as heck don't know what is.
 
Well, I know where I'm getting all my games from now on, Ebay. I get stuff cheaper, faster....pictures of what im getting, the works.

I can get rare games, hard games to find....all for cheaper or more reasonable prices. I suggest everyone hop on the boat with me.
 
[quote name='shrike4242']If that isn't ominous, I sure as heck don't know what is.[/QUOTE]

If this means CheapyD plans to take the site premium, I'm going to cry.:cry:
 
[quote name='JSweeney']Actually though, wouldn't it be more like $9.50 and not $10?[/QUOTE]

Dammit I knew I should have made the distinction. I didn't know The Sweeney would be posting though. Lesson learned.:lol:

Also, I want to make the distinction between 'new' (meaning a game still sealed in plastic) and 'new release' (a game only recently arriving on the market that sells at full retail price at most places). My post would make a smidgen more sense with that said. I hope.
 
[quote name='supermariomelee']That's what I'm wondering from the story, doesn't really tell who started the talks or who it'll benefit(although from the name, I'll say Gamestop). But this better not affect the 25% on preowned, otherwise I'll start shopping at Game Crazy.

It also better not affect EB selling SNES & NES games, cause I'll be pissed if they phase those out.

Those wondering that the stores might close, here's a weird one. When Gamestop bought Funcoland, which there was one of each in the mall I go to, they both stayed open. Check over the weekend and both are still open and the Funcoland store still has their name(supposedly they were supposed to switch to Gamestop), with Funcoland on the 2nd floor and Gamestop on the 1st.[/QUOTE]

For starters, since GameStop eliminated their 8-bit and 16-bit sales last year-- and with new consoles in the near future-- I'd be pretty confident that NES and SNES sales will be discontinued (at least at B&M stores). Game Crazy still does retro sales, though... so all is not totally lost.

The Funco/GameStop issue is interesting. In my local area, there was a Babbage's in a mall and then a FuncoLand in a shopping plaza across the street. Neither was closed when the merger occurred and both are still running today, which I never really understood.
 
[quote name='PsyClerk']Bull. Look at the number of CAGs who WON'T buy used because they want everything in perfect condition. The average consumer is going to look at price, and if EB/GS offers them a used game for $10-$15 less than a new one, with a 'guaranteed to work' clause, they will jump on it. About the only time I could see the new game selling more over the used is when the price difference is only $3-$5. Even then it won't matter to the parent who is just trying to please their kid with as little expenditure as possible.[/QUOTE]

I couldn't disagree more. Price is not the only thing that matters and you said as much in your first sentence. To the average consumer, buying a video game is a rare occurance and getting something new for $50 is a much better deal than getting something used for $45 (and probably even $40 or $35). Also, the average consumer doesn't have an edge card or know about cheapass sales, etc. We are in the minority - the average consumer pays $50 every single year for a new copy of Madden. Plus, I don't know about you but if I was buying a gift for a friend I sure as hell wouldn't buy them something used (unless it was the only way to get it) just to save a couple of bucks. The term "used" screams "don't buy me - there's something wrong" to the average consumer...
 
Head's Up, Game Crazy is doing away with most retro. Right now they are able to refuse any trade-ins from older systems (N64, DC and below, PS1 still accepted). Eventually, most of the retro games will be sent to other stores that sell alot of them (usually low income towns that don't go out and buy PSP when it comes out).
 
[quote name='CheapyD']My guess is that the main purpose of this merger is so they could finally get enough capital together to make a purchase offer on CAG



Honestly, I have no idea how this will affect CAG or even if it will affect CAG at all.

I do have my own surprises up my sleeve, but they won't be revealed for a few months.[/QUOTE]

[quote name='Shrike4242']
If that isn't ominous, I sure as heck don't know what is.[/QUOTE]

[quote name='JSweeney']If this means CheapyD plans to take the site premium, I'm going to cry.[/QUOTE]

You guys worry too much...its a good suprise!
EDIT: If it was a bad suprise, I wouldn't have mentioned it. ;)
 
[quote name='TimTucker']CAG turning into a used game store?[/QUOTE]

CheapAssGamer merges with VideoGameDeals.com. News at 11.
 
[quote name='CheapyD']You guys worry too much...its a good suprise![/QUOTE]

I think the surprise is that Cheapy D really is a robot.
 
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