Topic: The Game Industry is Run by MoronsThe Game Industry is Run by Morons

[TheYoungerPlumber]

I can't find a copy of Mario Kart Wii now that I want one. Awesome.

[Plugabugz]

What's stopping people from buying from places like Amazon?

[KDR_11k]

I think a part of this may be that the profit margins on new games are tiny and not worth it, the games are mostly a customer bait to get people into the store, if the game is sold out it still serves that purpose (might even be better that way as the costs for dealing with the game are no longer there). Of course being known for having games in stock might amplify the effect but then you risk ending up with unsold copies that can be a huge financial drain, not just because of price drops but also because of the things simply not selling, in my experience console games just rot on the shelves until the store decides to bite the sour apple and discount the game themselves to cut their losses.

IOW, actually selling games is not useful to stores so they don't really care if people can buy them.

[Rize]

That's what price protection is for.  I'm fairly certain the big 3 offer it to all major retailers (I think Sony and maybe MS even offer it to small stores).

[KDR_11k]

Is that on returns of unsold merchandise too?

[Rize]

yes, new unopened unsold merchandise.  I don't know if they will allow an out and out return, but if Nintendo ordinarily sells Metroid Prime 3 to a retailer for 40 dollars (and the retailer sells it for 50) and Nintendo says, we're cutting the price to 30 (and you sell it for 40), then Nintendo will give the merchant 10 bucks per copy.  Or something along those lines.

[vudu]

Actually, I think more manufacturers protect margin, not profit.  So (using Rize's example) since the retailer originally had a 20% margin, Nintendo would give the merchant $8 for each unsold copy (making their cost effectively $32/unit) to maintain that margin.

[TheYoungerPlumber]

What's stopping people from buying from places like Amazon?

In theory, nothing. That's where I went when I couldn't find a copy in a store. But guess what, it's only available through 3rd party vendors STARTING AT $65!

[Shift Key]

But guess what, it's only available through 3rd party vendors STARTING AT $65!

Hahaha, I paid $70 for MKWii and I got it before you. Take that, America-town!

[KDR_11k]

Oh and speaking of morons, what about the great idea of releasing everything for Christmas and then wondering why it's not selling?

[Rize]

seriously good point, however, the industry is slowly moving away from that.  While we have a glut around Christmas, there are a lot of good games during the rest of the year too (GTA IV was just released; frequently games that miss their fall release dates end up as spring releases)

[vudu]

This sounds like the topic of another blog entry. 

[Jonnyboy117]

I don't understand the existence or appeal of game-specific stores in this day and age.  Virtually all new releases are carried by general retailers like Walmart, Target, etc. as well as general electronics stores like Best Buy and Circuit City.  What is the advantage of buying a game in a game-specific store?  It usually costs more, and you get harassed by the employees who are trying to sell you a bunch of other stuff you don't want.

The ONLY reason I go into Gamestop is to trade in crappy review copies after finishing them, and to spend the credit I get for doing so.

[Halbred]

We've got a local version of GameStop called Microplay. I have to give them lots of credit. They usually give more in-store credit than GameStop would, the people there are REAL PEOPLE with knowledge of gaming, and their prices aren't ridiculous.

The drawback is that, being local, Microplay usually has to go through different vendors than chain stores, so there are times where release dates aren't met. They simply don't do pre-orders (and I applaud that). You can choose to put your name on a list and they call when the game comes in, but it's not reserved for you.

[TheFleece]

The game specific stores don't serve much purpose, I make it my business to avoid them at all costs. There are very few legit game shops that aren't chains anywhere, that's a bit of a problem because game shops that have integrity usually have to jack their prices up to stay in business.
The biggest reason that stops me from going to Amazon is that I'm a spoiled big city guy and paying for shipping.

[Jonnyboy117]

Most orders on Amazon qualify for free shipping, if you don't mind waiting a week to get your stuff.

[UncleBob]

What is the advantage of buying a game in a game-specific store?

When game stores carried lots of older games (NES, SNES, etc..), that was always a good reason to go in 'em.

As for Price Protection - that's not the reason why stores have plenty of copies of movies/books - it's because they can flat out return copies that don't sell.
No store is going to order hundreds of copies of a game that they may not sell, even if Nintendo offers to give them some cash back on unsold copies - they simply don't want to set on a large amount of inventory any longer than they have to...

You know those giant half-pallet displayers you see in Wal*Mart on release day?  We sell five copies, then ship the rest back.  If we were stuck setting on those movies for more than two weeks or so, you can bet we wouldn't get as many in.

[Kairon]

And then, those movies companies simply resell those same movies when some occasional re-orders come in, or via their own DVD music clubs or whatnot. Great secondary markets for movies to be sold in. If only videogames had a secondary market or some way to leverage old stock like that.

[NinGurl69 *huggles]

I ordered $140 worth of DVDs last night.  Saved $35.

Deepdiscount's summer SUPERSALE is almost over.

[KDR_11k]

With the money Pro can potentially save from that SUPERSALE he could buy a button that makes it snow on the beach!

[UncleBob]

And then, those movies companies simply resell those same movies when some occasional re-orders come in, or via their own DVD music clubs or whatnot. Great secondary markets for movies to be sold in. If only videogames had a secondary market or some way to leverage old stock like that.

Or they come back a few months later in our $5 dump bin...

Anywhoo, with paperback books, most retailers tear the cover off, send it back for credit and destroy the rest of the book (recycle!).  There's no real secondary market for paperback books - although some paperback books *are* the secondary market.

Same with movies.  Most "new release" DVDs are the secondary market (theatrical release being the primary).

Ideally, if you know your game is good and it's going to sell (or it should sell), there's no reason not to offer to buy back unsold copies (Zack and Wiki would have been a good game to do this with... Giant half-pallets displaying the game at Wal*Mart would have sold more copies.  How about Boom Blocks?).  If you know your game is trash (Dogz, etc...) then yeah, it makes sense not to offer to buy back unsold copies.

The idea of "we want you (retailers) to buy our games - no matter how crappy we make them - and you get to shoulder all the risks" is half the reason the distribution of games is so screwed up right now.

[NinGurl69 *huggles]

I buy my games where and when it makes sense to.

[Rize]

Tycho from today's PA news post:

"Etrian Odyssey II is exactly what I want to play right now, and it's sold out virtually everywhere I go."

In case anyone didn't figure it out.  EOII is the game that inspired this post, although Castlevania Dawn of Sorrow is what fueled it (it's just barely understandable that an Atlus title would be understocked).

[NWR_insanolord]

Atlus only makes 78 copies of each of their games for each region. I don't like places saying you need to preorder a game to get it but you're a fool to not preorder an Atlus game.

[NinGurl69 *huggles]

har har.