GameStop buys EB

Dram writes "Business Week, among others, is reporting that GameStop will buy Electronics Boutique for $1.4 billion. Hopefully this will allow both chains to better compete with Wal-Mart and Best Buy for our gaming dollars."

Comments

Well

[Sv-Manowar]

"Shares of Electronics Boutique rose even higher -- up $14.42 or 35.1 percent, to $55.54 -- in trading Monday morning on the Nasdaq Stock Market."

Judging on the current volatility in the games market, some people would decide to sell any stock they own at this point. It would probably be worth remembering about the PS3 and Xbox2 being just around the corner. This buyout will create a company definitely worth watching.

Um...

[GoodbyeBlueSky1]

Hopefully this will allow both chains to better compete with Wal-Mart and Best Buy for our gaming dollars.

I don't understand, both GameStop and EB suffer from varying degrees of suckiness. I've had to deal with enough crap from both stores to wish they'd just go out of business altogether.

While Walmart and Best Buy might not be all that great either, they are ALWAYS, WITHOUT EXCEPTION cheaper or equal in pricing to GameStop/EB for new games.

Used games are a different story, but when I see games that retail new for $19.99 selling for $17.99 used, or $49.99 games selling for $44.99 used, I feel like you're a sucker for buying used games there (this intarweb thing works pretty well for that). On top of which is the fact that you won't get more than $5 cash/store credit for selling that $49.99 game that they turn around and sell for $44.99. Bastards.

Mod me a troll if you must, but I doubt I'm the only one with these complaints.

Re:Um...

[GamingEngineer]

The cool thing about smaller game shops like EB and Gamestop is that depending on the management and the area they are located in, you can sometimes find a genuinely cool atmosphere in them. They're also great for those hard-to-find older or niche titles that warehouse stores don't carry, because they don't move off the shelves fast enough.

My only qualms with EB are the pushes to preorder something or buy an additional item. If you're a gamer, you usually know what you want when you walk in the store. I don't want pushy sales. If I buy a game at Target, I can just get the sales rep to open the glass case, hand me the game, and ring up the sale. That all depends on the management.

The other thing I have an issue with is how EB has a habit of opening a new copy of a game to be able to put it on the display shelf. If it's the last copy in stock, they want to sell it to you at the price of a new game, even though the goo from the 5 stickers that have been put on the case and the discs that have just been kept in a drawer somewhere can put the game in a condition that can be worse than many used games. No thanks. Why not use electronic security devices or some other method?

Consolidation != competition

[EnronHaliburton2004]

Hopefully this will allow both chains to better compete with Wal-Mart and Best Buy for our gaming dollars."

This may suprise you, but when chain stores consolidate, it rarely leads to more and good competition.

Frequently, the reverse happens. The big chains simplify their inventory, reduce service, and only do the absolute minimum to compete with the likes of Wal Mart.

Unfortunately, the consumers won't always shop elsewhere. There isn't always a convenient choice.

Re:Consolidation !always= competition

[cgenman]

In this case, though, the idea is valid. EB, Gamestop, and the rest of the specialty retailers are getting creamed by Walmart, Target, Kmart, Toys R Us, Best Buy, and the rest of the superstores. I can't specify numbers, but one could ignore the specialty retailers and still have quite healthy sales.

In other words, EB / Gamestop / etc aren't competing with eachother, they're competing with the superstores. And they're losing. And they're in danger of disappearing.

I've not been terribly happy with EB in the past 10 years, and their employees have been legendarily unhappy with corporate policies. I would much rather Funco have taken over EB, and not the reverse. But Funco was even more of a specialty store, catering to the used NES game crowd.

In my not-so-humble opinion, EB / Gamespot need to work on getting more space, bigger aisles, and not cluttering their stores like they were libraries. Their stores are an intimidating wall of noise, noise which continues inside. Even if they're not going to go full Apple store sleek, they should at least go Suncoast. Simplifying their inventory might be a first step. I don't see how it would be possible for EB to reduce service any, short of slapping every customer that walks in the door. But reducing the noise and helping people to find good games (recommended section?) should be their first steps.

Won't change competition.

[hal2814]

GameStop, EB, etc will always have a niche in the marketplace. There really do need to be exclusive video gaming stores in order to attract audiences that Wal-Mart, BB, etc do not wish to cater to. However, these niche stores will never be able to compete with Wal-Mart or Best Buy. The ones that have tried to compete on a customer-service-based approach have either gone under or changed their ways. Anybody remember when Software ETC let you return opened games for a refund within 30 days?

Niche Stores also can't compete with the raw buying power of the chain stores. Things like returning a PSP is no problm at Wal-Mart. Just tell them you want your money back and they'll gladly give it to you. I've even returned open games to Wal-Mart after some arguing. GameStop and EB have to go along with things like dead pixel policies because they don't have the power to bully Sony like Wal-Mart does.

Are they really losing?

[Reignking]

If GameStop and EB are doing so poorly, why do they seem to be expanding so rapidly?

Re:... to better compete?

[ajservo]

Am I not supporting the industry by walking up to a well stocked BB and buying it there the same day as 200 16 year olds line up at a gamestop?

You're feeding me a line that you think Gamestop is the smaller company here. Gamestop's been folded over and over again over SO many other game stores.

You're talking: Babbages & Software Etc. merge, they foldover funcoland, get parented by Barnes and Noble, and then sweep up EB. What part about that suggests that GS is a small-ish mom&pop store only scraping by on preorders?

I've got a reason not to pre-order or even frequent a smaller GS store. Haggling for more, future preorders. Again, I live in Houston, I don't have a problem locating games and consoles on launch days at all. I bought 8 Nintendo DS consoles on launch day without a single preorder from 5 stores. None at EB or GS. They were all "sold out"

I don't see why being a gamer makes you susceptible to supporting "boutique" pricing. They're always $5-$10 higher than ANY other retailer. The only real incentive to shop here is for the hope of them stocking some random RPG they didn't keep in stock at BB.