On Retailers And Videogame Pricing

Thanks to CNN Money for its article discussing the results of a retail survey analyzing relative videogame prices among "key game retailers." According to the survey: "Wal-Mart's prices were the highest, coming in 9 percent higher -- nearly $100 for a basket of 30 games -- than Amazon.com and 6 percent higher than Best Buy, according to Piper Jaffray analyst Tony Gikas." Other interesting trends were also observed, though: "The used game market has quietly been growing for the past several years and Gikas now estimates that more than 8 percent of all games sold in the U.S. are used games." The piece concludes by noting: "The survey indicated retail prices seem to be holding up as the current generation of consoles hits middle-age... Other analysts, though, say retailers they've talked to indicate while prices have not fallen much, the demand for games at higher price points is not as strong as it was a year ago."

Comments

Used games from Amazon?

[BMonger]

The article doesn't really mention this but I find it hard to believe that Amazon is that much cheaper (I'd like to see what games they picked). In my experience Amazon and Best Buy are generally the same with Wal-Mart usually being a few cents to a dollar and some change cheaper. Except of course when you look at the used game market at Amazon. Then Amazon is by far cheaper but you typically aren't buying from Amazon.

I'm not buying this article...

Re:Used games from Amazon?

[Anonymous Coward]

So you're arguing that this article is inaccurate based on what exactly? Your internal belief system?

The fact is that Walmart takes a very long time to lower prices on their games. Games that came out a year ago or even more can often be found for their original retail price. While Best Buy, Amazon, EB, etc. all sell the games for ~$50 when they are first released, they are on a shorter timeframe for when the price of a released game is lowered.

Do you need to have the "latest and greatest?"

[wheresdrew]

I know a lot of gamers have to have all the newest titles right when they come out, but if you're not just totally itching to play a new game, why not wait a while? There are plenty of games I'd like to play, but am not willing to pay $50 for. Wait for the price to drop or the title to get a "greatest hits" release.

You can save plenty that way. For example, I just picked up Wave Race: Blue Storm for Gamecube in Akihabara today for 500 yen - for a new copy. I'd never have paid $50 for it, but I'll buy just about anything for $5-10.

Holding off on the "iffy" purchases makes it a lot easier on the wallet to pick up the occasional "gotta have it" game at $50.

Re:Who's still surprised?

[damiangerous]

"Always the lowest prices" has been replaced with "Always low prices".

They changed that because they were taking too much flak from the various consumer protection agencies. They don't have any sort of price-matching policy so it was misleading for them to claim they were always the lowest.

Re:Who's still surprised?

[Txiasaeia]

That's not exactly true up here in Canada, at least. Most products (not including electronics - much more competitve) are *much* cheaper at Walmart than elsewhere. For example, a 2L bottle of pop is $0.84, whereas you can jack up that price to $1.33 (if it's on sale) to $3.00 (at a local convenience store). A huge tin of Good Host Ice Tea (which I consume on a monthly basis) is $7.83 at Walmart, but $10.00 or more anywhere else. The same holds true for beauty products/cosmetics (I'm married), toys (yu-gi-oh cards.. I have a kid) and snacks (because I like to snack).

Yes, electronics are generally more expensive at Walmart, but come release day for any video game, they're guaranteed to be cheaper at Walmart. I picked up a copy of SMB3 for my GBA for $25, where it was retailing for $40 elsewhere.

Re:Armchair Economics

[dR.fuZZo]

I'm no great fan of Wal-Mart, but I wouldn't be too quick to judge them based on the limited data in this survey.

I wouldn't be quick to disregard the survey, either. My informal observation is that all games commonly sold at a set price point ($50 for most new games) can be had at Wal-Mart for basically $50, but they shave off enough that, technically, Wal-Mart is the cheapest store in town.

However, what Wal-Mart has much less of, is substantial price cuts on any video games. You can sometimes find games marked at $10 or $20 off at Best Buy, or even Target, but I haven't had similar luck finding such deals at Wal-Mart. Instead they sell all games at the "going price" minus a little pocket change so they can say their the cheapest.

It's the bigger price breaks elsewhere that has a better chance of opening my wallet.