Video Game Slowdown Impacts Amazon's Bottom Line

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

Comments

Re: Video Game Slowdow Impacts Amazon's Bottom Line
Submitted by Austin_Lewis - July 30, 2009 at 10:34 am -0500

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.

Re: Video Game Slowdow Impacts Amazon's Bottom Line
Submitted by Neo_DrKefka - July 30, 2009 at 10:45 am -0500

 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 JustChris - July 30, 2009 at 10:49 am -0500

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 Wormdundee - July 30, 2009 at 2:31 pm -0500

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 - July 30, 2009 at 5:06 pm -0500

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

Re: Video Game Slowdow Impacts Amazon's Bottom Line
Submitted by PHX Corp - July 31, 2009 at 9:28 am -0500

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 hellfire7885 - July 30, 2009 at 10:53 am -0500

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 killatia - July 30, 2009 at 11:12 am -0500

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 - July 30, 2009 at 11:44 am -0500

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 - July 30, 2009 at 11:46 am -0500

Okay, sounds fair to me.

http://www.magicinkgaming.com/

GamePolitics ShoutBox

Posted 11/21/09 at 09:21am
magic_taco: ...ok...
Posted 11/21/09 at 08:16am
ZippyDSMlee: Welcome and goodmorning its zippy in the AM....wat OMG its 8:50AM!!!!
Posted 11/20/09 at 05:42pm
ZippyDSMlee: oh may the cute stab out your eyes, http://www.youtube.com/user/simonscat
Posted 11/20/09 at 05:17pm
JDKJ: O.K. Suit yourself. But when you're wearing Ray-Bans, sitting on a curb with a white cane and a cup of pencils, and doing Stevie Wonder impersonations, don't say I didn't warn you.
Posted 11/20/09 at 05:10pm
ZippyDSMlee: JD:No thank you I don;t want your cooties...or STDs...
Posted 11/20/09 at 05:01pm
JDKJ: Me. I'm rehearsing the role just in case I do get dubbed Zippy The Soecnda.
Posted 11/20/09 at 04:59pm
DarkSaber: Wait, is that meant to be Zippy, me or you?
Posted 11/20/09 at 04:49pm
JDKJ: I cud caer lez. =^^= *wakes up in mid-afternoon after staying up until 3:00AM soldering resistors on to circuit boards, stumbles around in formerly white but now grey underwear, while simultaneously scratching groin with vigor and making coffee*
Posted 11/20/09 at 04:46pm
DarkSaber: knell? Don't you mean Neil? Anymore of tht and I'll dub thee Zippy The Soecnda
Posted 11/20/09 at 04:44pm
JDKJ: Now, now, Saber. Don't be salty. You weren't the first one to knell and bob and you ain't gonna be the last one, either.
Posted 11/20/09 at 04:42pm
DarkSaber: JD's feeling rather desperate it seems.
Posted 11/20/09 at 04:33pm
JDKJ: C'mon, Zip. You already touch yourself way too much. Spread the love. Before you go blind.
Posted 11/20/09 at 04:27pm
ZippyDSMlee: JD:No and I ain't touching any part of you or your friends!! :P
Posted 11/20/09 at 04:25pm
JDKJ: @Zip: You know Lik Mitaint?
Posted 11/20/09 at 04:18pm
ZippyDSMlee: neill and bob,oldest giveing head joke and most lamest...
Posted 11/20/09 at 04:18pm
JDKJ: But thanks for the memory. MIB's a classic. *sings* "Here come the Men in Black. Galaxy defenders. Here come the Men in Black. They won't let you remember."
Posted 11/20/09 at 04:18pm
ZippyDSMlee: JD:for the record I told you you can suck your own dck.
Posted 11/20/09 at 04:07pm
JDKJ: Naw, man. That's Mueedeegiaap and Bob. And you can stop bobbing. I got Zippy bobbing now, too.
Posted 11/20/09 at 03:56pm
DarkSaber: OH I get it now! It's Men In Black quote! The twins that run the comm centre in HQ.
Posted 11/20/09 at 03:49pm
JDKJ: I'd like to introduce you to them. First, Neil. Then, Bob.
Login or register to post shouts