Pachter: So Far, GameStop Not Impacted By Online Pass

August 20, 2010 -

Michael Pachter, gaming research analyst for Wedbush Morgan Securities, says that schemes to recoup cash from used game buyers doesn't seem to be having an impact on sales at GameStop. In a post-financials report on the retailer, Pachter said that the country's largest games retailer remained unscathed in its latest quarter and that aggressive code-based schemes for used games weren't hurting the retailer’s bottom line. This could be because most of these schemes from EA and THQ (in a small measure) are targeting multiplayer, which GameStop says only 25 percent of used game buyers are interested in.

"The company has not seen a negative impact on used software sales from first-use codes or new competitors in the space," Pachter said. "The company estimates that only 25 per cent of used game buyers play online.”

Naturally EA and THQ have just barely rolled out such schemes on a couple of titles. We'll see how it affects used games sales of titles like the latest Madden game in the next quarter. Pachter also shared his pessimism on GameStop’s plan to create a digital market space to sell DLC.

"We remain skeptical about how GameStop will participate in digital distribution," he said. "After a successful trial run in 35 test markets in the spring and summer, the company will complete a full DLC kiosk rollout in Q3."

"While we agree that the DLC opportunity is large and growing, we are skeptical that it will be a sales growth driver. Rather, we think that DLC will at best forestall the inevitable cannibalization of physical disc sales and allow GameStop to capture a small percentage of this cannibalization, with relatively insignificant margin contribution."

Source: MCV UK


Comments

Re: Pachter: So Far, GameStop Not Impacted By Online Pass

Without having seen Gamestop's plan to sell DLC, I'd have to question how they think they can legally do that.

Also, I think we're at least another quarter or two away from really seeing the negative effects of used game sales. Lets see how well Gamestop is feeling in Q3 2011.

-- Dan Rosenthal

-- Dan Rosenthal

Re: Pachter: So Far, GameStop Not Impacted By Online Pass

How do they think they'll get away with this?! I'm sure they'll do something illegal in all 4000+ stores and the international corporation will be sunk by a lawsuit! ...!!! 

Ohwait, no... they're more likely allowed to sell DLC because of a business partnership between themselves and the publishers.  Talking to gamers in person, enough of them don't even know how to get their Xboxes online that it's going to be a very, very long time before publishers can give the finger to retailers like GameStop entirely by doing away with physical media.

This initiative means little more than letting gamers buy an $8 DLC pack rather than spending $20 on points they won't use... and encouraging GameStop's umpteenthousand register monkeys to suggest DLC alongside game purchases.

 
Forgot your password?
Username :
Password :

Poll

Should Nintendo have DMCA'd a fan's free Super Mario HD remake?:

Shout box

You're not permitted to post shouts.
ZippyDSMleeWhere is "Yes, if it was monetized." In the questions?04/01/2015 - 9:07pm
E. Zachary Knighthttp://reason.com/blog/2015/04/01/this-anti-gay-pizza-place-got-trashed-on04/01/2015 - 8:17pm
E. Zachary KnightAccording to this link, the pizzeria owner did not actually refuse anyone service. He was ask by a reporter if he would cater to a gay wedding and he answered in the negative. When that was published, the rants came rolling in.04/01/2015 - 8:17pm
Papa MidnightCorrection to my prior note, DiRT 3 Complete Edition does NOT replace DiRT 3 in user's libraries. But existing owners of DiRT 3 do get it for free.04/01/2015 - 8:00pm
Matthew Wilson@AE it could be like pokemo, but the tweet and the site makes it look like 2 different games. tbf I do not know Japanese.04/01/2015 - 7:29pm
MechaCrashInteresting how YouTube comments are universally acknowledged to be cesspits of idiocy where no coherent thought can survive, until a woman closes them. Then it's CENSORSHIP and being AFRAID OF DEBATE.04/01/2015 - 7:29pm
Andrew EisenThat's... weird. The Direct made it sound like this was an organic part of a single game.04/01/2015 - 7:08pm
Matthew Wilsonapparently the 2 sides of the story in the new fire emblem game is 2 difrent games in japan, and we are getting both combined. https://twitter.com/RPGSite/status/583415770744393729/photo/104/01/2015 - 7:00pm
MonteAE: there are pizzaria's that also make italian food which you can order in bulk to cater parties. Also, google pizza wedding; cause it is pretty cool04/01/2015 - 6:50pm
ConsterThe vast majority of (if not all) 1-star reviews are angry rants about its policy. 'Jesus said to love thy neighbor, assholes' (paraphrased) seems very common.04/01/2015 - 6:49pm
Matthew WilsonI did not check it out personaly. I only read a arctlice about it, but it does seem to be in a lets just say a very mean way.04/01/2015 - 6:41pm
Andrew EisenTrashed in a fair way or are people lying about cockroach infestations and stuff?04/01/2015 - 6:24pm
Matthew Wilsonwell they also are getting trashed on yelp too. given the number of people that use it, I suspect they will lose allot of business even if they change their mind.04/01/2015 - 6:19pm
Andrew EisenIt's a pizza joint. It caters weddings? Really? I mean, that's cool. Really cool, even. But seriously?04/01/2015 - 6:02pm
Consterhttp://www.huffingtonpost.com/2015/04/01/indiana-pizza-gay-couples_n_6985208.html04/01/2015 - 5:57pm
Andrew EisenConster - Link?04/01/2015 - 5:55pm
Conster-annnd they are 'temporarily closed' after phone threats. Way to take the moral high ground against bigotry, people. -,-04/01/2015 - 5:51pm
ConsterThe first business to use SB101 to deny service to gay weddings has arisen - let's see if EZK's theory about the free market being sufficient to deal with them holds u-04/01/2015 - 5:50pm
MonteYa i remember when she first started her videos with the comment sections open. There was A LOT of vile harrassment to shift through to get to any REAL debate. Youtube is a TERRIBLE debate forum. Can't blame her for not wanting to deal with harrasment.04/01/2015 - 5:49pm
ConsterWho's this "Anitia Skeeter" person you speak of?04/01/2015 - 5:31pm
 

Be Heard - Contact Your Politician