Video Game Slowdown Impacts Amazon's Bottom Line

July 30, 2009

The Wall Street Journal reports that mega-online retailer Amazon.com posted a 14% revenue increase for the financial quarter ending June 30th, but its profits fell 10% from $158 million to $142 million.

Amazon’s Chief Financial Officer Tom Szkutak commented on the drop laid much of the bad news on declining video game sales:

You're seeing an industry slowdown in videogames and consoles.

Despite singling out games, other factors impacted the profit fall such as “flat” media sales in North American (including books and music) and a $51 million legal settlement paid to Toys R Us.

Via: GamesIndustry.Biz

Reporting from San Diego, GamePolitics Correspondent Andrew Eisen...

Posted in Amazon.com Recession Retailers Video Game Industry/Economics

Comments

Re: Video Game Slowdow Impacts Amazon's Bottom Line

Submitted by killatia on Thu, 07/30/2009 - 12:12.

Why did they paid toys r us $51 million?

http://www.magicinkgaming.com/

Re: Video Game Slowdow Impacts Amazon's Bottom Line

Submitted by ShadowDragon28 on Thu, 07/30/2009 - 12:44.

Had to do with a 2004 dispute where Toys R Us was to exclusively supply Amazon with stuff.

Source: http://www.businessweek.com/ap/financialnews/D99KDI880.htm

Re: Video Game Slowdow Impacts Amazon's Bottom Line

Submitted by killatia on Thu, 07/30/2009 - 12:46.

Okay, sounds fair to me.

http://www.magicinkgaming.com/

Re: Video Game Slowdow Impacts Amazon's Bottom Line

Submitted by hellfire7885 on Thu, 07/30/2009 - 11:53.

When consoles go over 200 or 300 dollars, and game prices are approaching over 60 dollars, of course new sales are going to drop. And despire what the industry is trying to do, eradicatign the used market will mean people simply won't game.

Re: Video Game Slowdow Impacts Amazon's Bottom Line

Submitted by Neo_DrKefka on Thu, 07/30/2009 - 11:45.

They need to lower the prices. I mean we are seeing the price of video games at the level it was during the N64. Sony's PS1 price and the games price point 39.99 and 49.99 is something people can work with

Re: Video Game Slowdow Impacts Amazon's Bottom Line

Submitted by PHX Corp on Fri, 07/31/2009 - 10:28.

This is why I shifted to Digital downloads on my Xbox 360, Wii and PS3, I still buy retail games time to time

Watching JT on GP is just like watching an episode of Jerry springer only as funny as the fights

Re: Video Game Slowdow Impacts Amazon's Bottom Line

Submitted by Wormdundee on Thu, 07/30/2009 - 15:31.

Yeah, the price of video games IS slowly climbing, but it hasn't quite reached those levels yet. In Canada, most high profile new releases are now selling for 70$, which means I don't buy any new console games. It sucks, but I can't justify that much money for a game.

I'm being relegated to the PC scene (which I like better anyway), where new releases are consistently at 49.99.

But yeah, back in the N64 days I paid over 80 dollars for Tony Hawk 2. Yeesh, I can't believe I did that.

Re: Video Game Slowdow Impacts Amazon's Bottom Line

Submitted by ZippyDSMlee on Thu, 07/30/2009 - 18:06.

we need games to be rpiced the same as film 10-30 a pop. It will do far more good than bad.

I am a criminal because I purchase media,I am a criminal because I use media, I am a criminal because I chose to own media..We shall remain criminals until Corporate stay's outside our bedrooms..

http://zippydsmlee.wordpress.com

I have a dream, break the chains of copy right oppression! http://zippydsmlee.wordpress.com/2011/12/31/what-is-cigital-disobedience/

Re: Video Game Slowdow Impacts Amazon's Bottom Line

Submitted by JustChris on Thu, 07/30/2009 - 11:49.

Nah, I think paying $70 for an N64 game was worse, and $70 in 1998 dollars is somewhat more than $70 today. Right now I don't see the games top more than $60, not including those that come with extra accessories.

GameSnooper

Re: Video Game Slowdow Impacts Amazon's Bottom Line

Submitted by Austin_Lewis on Thu, 07/30/2009 - 11:34.

I think that 51 MILLION DOLLAR SETTLEMENT Might have had a bigger role in screwing with their profits than the economy. I know, sounds crazy.

Shout box

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DorthLous: Passed 1.5M$. And I'd also say that Brutal Legend is far from being a bad game. I just think it was a few levels under what people expected from the people working on the project.02/11/2012 - 8:25am

Technogeek: Brutal Legend wasn't bad so much as "marketing had no idea how the game actually played", causing it to suffer accordingly.02/10/2012 - 10:38pm

RedMage: It looks the CIA's website has been DDOS'ed. Anon?02/10/2012 - 7:52pm

RedMage: Brutal Legend.02/10/2012 - 7:52pm

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Guamish: I think it is in good hands. Tim did a game for the GDC award show and that was fun for how short it was.02/10/2012 - 12:22pm

Andrew Eisen: It'll be tragic if the game ultimately sucks.02/10/2012 - 12:17pm

james_fudge: $1.3 million02/10/2012 - 11:32am

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Andrew Eisen: Audrey didn't quote the sassy parts. Here's IGN's article: http://wii.ign.com/articles/121/1218359p1.html And here's my original post: http://tinyurl.com/7y68a3902/09/2012 - 7:50pm

james_fudge: I hope you some said something sassy! Where's the link?02/09/2012 - 7:46pm

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james_fudge: Thanks for the heads-up DorthLous02/09/2012 - 4:33pm

DorthLous: Will do, my apologies.02/09/2012 - 4:14pm

Andrew Eisen: I appreciate the heads up but please keep typo alerts to the specific article's comments or PMs.02/09/2012 - 3:33pm

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