November 1, 2008 -
Gizmodo reports that PlayStation manufacturer Sony literally turned its trucks around in mid-delivery yesterday over fears that struggling retailer Cicuit City would not be able to pay for the merchandise.
As GamePolitics reported in mid-October (see: Circuit City Facing Game Over), Sony's move could be the final blow for Circuit City. Look for a domino effect as other suppliers follow suit, leaving the troubled chain without merch to sell.
Circuit City currently controls 5-10% of the retail video game market.
Comments
Re: Death Spiral? Sony Cuts off Circuit City Shipments
Circuit City has been a sinking ship for some years but I hope that they are able to ride this out and come back. Their new concept stores called "The City" are smaller and focus primarily on TV sales (which is what the crux of their business was when they first started some thirty years ago) and their gaming station is just freakin' cool. It seems like they are trying to get a more hands on type of feel to their stores which causes it to be more accessible than Best Buy.
I don't even think you can compare it to Best Buy anymore though because BB does it all, has a huge music/movie collection, sales appliances, and actually knows how to do business (though I still can't stand speaking with their Geeksquad). Circuit City had a worthless CEO who drove the company into the ground...now that he's gone, I have high hopes that the company can turn things around. Granted this is going to involve massive layoffs, and many store closings....but it could be done...and a competitive market is much better than a Best Buy controlled industry.
Re: Death Spiral? Sony Cuts off Circuit City Shipments
Eh, I won't miss them. I'd rather see Best Buy and Fry's flurish. I like them quite a bit more. Which is to say, I don't like CC at all.
Re: Death Spiral? Sony Cuts off Circuit City Shipments
The retailers would probably do better by not selling game consoles at all. The profit margins on the consoles for retailers are somewhere in the 1% - 2% range. After shrinkage, returns and customer service I don't think they make any money out of the hardware.
-- http://pixelantes.blogspot.com/
Re: Death Spiral? Sony Cuts off Circuit City Shipments
Too bad, so sad circuit city.
One of my friends got the training there. They literally told him to lie about the product to sell the warranty so he got the commission.
I've always referred to them as the electronic ghetto.
Re: Death Spiral? Sony Cuts off Circuit City Shipments
I don't know when your friend worked for Circuit City, but no sales associates get commission anymore. They get bonuses...but no commission.
Re: Death Spiral? Sony Cuts off Circuit City Shipments
When you got gas at 5 dollars a galleon in some places yeah your going to cut back, big time. After August anymore I refuse to drive 70 I drive 45 and 55 on every major highway. Oil has losts its value we are going to drive but not as much
Re: Death Spiral? Sony Cuts off Circuit City Shipments
Is it still that costly around the country? It was $4-5/gallon out here in the Baltimore area for the last couple years, but it's dropped tremendously over the last few months. We passed by a station just today where the cheap gas was $2.29/gallon.
Re: Death Spiral? Sony Cuts off Circuit City Shipments
FIRE SALES AHOY!
i intend to capitalize on circuit city's misfortune. there are a lot of games and other electronics i've been wanting, looks like i will be getting them soon.
It is not murder; I am merely advancing the hands of the clock, just a bit.
Re: Death Spiral? Sony Cuts off Circuit City Shipments
Yes I also plan to go crazy when they have a going out of business sale.
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"What for you bury me in the cold cold ground?" - Tasmanian devil
Re: Death Spiral? Sony Cuts off Circuit City Shipments
I remember when Suncoast had 80% off of everything it was nice
Re: Death Spiral? Sony Cuts off Circuit City Shipments
Seconded!
Re: Death Spiral? Sony Cuts off Circuit City Shipments
Do you know what happened in the 30's. There was a rumour that some huge businesses are going bankruptcy, so everyone believes it and starts selling their stock like crazy, dropping down the price to a point that businesses really do become bankrupt.
Circuit City is going to bankrupt because of moves like these. They are failing because of stupid baseless rumours.
Re: Death Spiral? Sony Cuts off Circuit City Shipments
Actually Circuit City's stock is worth currently in the margins of cents not dollars. You can buy Circuit City's stock for I think its less then fifty cents now. The NASDAQ is threatening to take them off their list if they dont reach over a dollar in six months
Re: Death Spiral? Sony Cuts off Circuit City Shipments
No... Circut city is going our of busines because they are a shit company. A few years back they either fired, or told their experienced sales staff that they were recieving a signifigant pay cut(Many of them quit). All in the name of cutting costs.
Their sales staff currently sucks at any store I've been too. They used to ahve knowledgeable and helpful folks now they have idiots and highschool dropouts. I can't go look at new speaker equipment their because anytime I do, I get bothered by salesmen who make weak jokes about how this goes to 11. I also get tired of them trying to tell me that the only cables I should use are those fucking monster cables which cost 10 times as much as the cables I can make myself, and don't sound any better.
Thats why that shit company is going out of business and good fucking riddance.
Re: Death Spiral? Sony Cuts off Circuit City Shipments
You do realize that theGreat Depression was more than a stock market crash right. The stocks dropped then quickly climbed back up to the previous years level and then dropped again because the consumers weren't spending as much but it wouldn't have been near the problem if it wasn't for the the dustbowl and several other events like Britain attempting to go back to the gold standard. Sony is not panicking they are thinking carefully about how much of an impact it would be if Circuit City cannot pay. Take a look at wallstreet there are a lot more problems than 'panic'.
Re: Death Spiral? Sony Cuts off Circuit City Shipments
I don't care for any of the 'big box' electronic retailers, their sales staff are less than useless. But having a competitor exit the market is usually bad for consumers, and with the US economy in its current state it is bad for the country as a whole.
Re: Death Spiral? Sony Cuts off Circuit City Shipments
i'll be a vulture on that "going out of business" corpse soon.
Here are we -- and yonder yawns the universe.
Re: Death Spiral? Sony Cuts off Circuit City Shipments
i don't feel bad for circuit city in general... just the employees... :/
Jesus Jack Jones Thompson.... is dead... (funeral udruge, followed by Celebrate :D )