Are Exclusive Games GameStop's Secret Weapon?

An anonymous reader writes "It's one thing to try to muscle out the competition, but when you start to lock down the sales of certain games, consumers lose. This is how GameStop hopes to compete against the big box retailers. With sales of games predominantly happening at stores like Walmart or Best Buy, they must feel that extreme measures are required. 'Chulip--an offbeat game involving kissing--has been released in the US to the cheers of fans of quirky games. The only problem is that EBGameStop is going to be the only place to buy it. Strategy gamers will be annoyed to hear that The Settlers for the DS will also be an EBGameStop exclusive. The game has been getting some favorable early buzz, but if you'd like to buy it on the 28th of next month... well, you know where you'll have to go.'"

Comments

As an ex-retailer, this isn't as bad as it sounds.

[dada21]

I used to run a brick and mortar chain of stores (skateboarding, paintball, etc) that went bankrupt due to tax incompetency on our part. But we learned some important lessons along with our suppliers -- even with the Internet quickly dismantling brick and mortar operations, we were a VERY important arm of the manufacturer's life because of our direct end-user support. As our local competitors fell to the online pricing, we were growing because we supported our customers (even for online purchases). In the video game world, it isn't as big of a deal, but the gaming industry still needs brick and mortar stores for more than just sales.

Our most important items were those that we had received to sell before the online merchants did -- at a decent margin (50-60% profit). It took about 2 years for the manufacturers to offer these "brick and mortar-only" products, but they helped us so much that it gave us reason to open additional stores.

I don't think you'll see tons of games go local-only, but those that do will help to keep the local stores open, and for the manufacturers this is a very important area to keep alive. I can't see the negatives, except that the more local-oriented family stores won't have that competitive edge, which is definitely a loss.

Niche marketing?

[FlyByPC]

It's difficult for anyone to compete with Wally World on price alone -- but where Gamestop et al could do well is on service and convenience. My local Wal-Mart's game selection is absolutely horrible. They probably still aren't aware that there are two versions of Flight Simulator X, let alone add-ons.

What smaller stores can offer is a store by gamers, for gamers -- with employees who understand what the games are about (c'mon, finding gamer employees can't be that hard). Just like comic book/game stores can stay in business by providing niche services and products (where else are you gonna find a blue pearlescent D30 for your collection?), Gamestop and similar stores can attract customers by just providing better service.

Some things they might try are:
* Guaranteed availability of games on launch day (I believe they already do this; I don't think Wal-Mart bothers.)
* Try-before-you-buy, with a bunch of really cool peripherals set up (to encourage sales of these, too),
* Courier service, for lazy geeks who want their games now but don't want to drive to the mall (maybe work with a pizza-delivery joint?),
* Web delivery of games (I just downloaded Ship Simulator, which is 300+ meg; it got here in just a few minutes. Much easier for everyone involved than buying a CD from a store or using FedEx.)

Bottom line -- they shouldn't need strong-arm tactics like this. Can't really fault them much, though; it seems like it's becoming more and more common. 8-(

Re:Niche marketing?

[ZorbaTHut]

* Guaranteed availability of games on launch day (I believe they already do this; I don't think Wal-Mart bothers.)

Ahahahahah. That's funny.

I think the last four or five times I went to hunt out a game on release day every single EBGamestop in the area was sold out. In each case I ended up finding it in Best Buy or CompUSA. "Did you pre-order?" "No." "Well, then we don't have any." Fuck you too, EBGamestop.

This happened with Ratchet: Deadlocked, Shadow of the Colossus, and Civ4. I can't remember others offhand but I know there have been some.

The fundamental issue is that new games don't make retailers money. The distributors sell them to retailers for only a few dollars below retail price, and the retailer is stuck trying to make money off game placement, used games, service contracts, magazine subscriptions, or hint books. (Ever wondered why they push those so hard? It's because they make six times the profit on a single item sale.) It's a horrible problem with game retail right now and really desperately needs to be addressed.

Re:Niche marketing?

[Gothic_Walrus]

Try-before-you-buy, with a bunch of really cool peripherals set up (to encourage sales of these, too)

You know, they used to do that back when FuncoLand was more than just a memory of days gone by. You'd ask an employee for help, they'd unlock the drawer the console was kept in, they'd pop in your game, and you'd be playing it. You knew the game worked, you could tell if you were going to like the game or not, and the system generally worked well.

Now, if the game's not on the manufacturer-issued demo disc, you don't get to test it before you buy it. And if it's used, you'd better pray it's in good shape, especially since you don't see the condition of the disc unless you specifically ask to beforehand (and even then, I've been brushed off).

Really, doing things like this that would help to make customers happier...I don't see how this could be a bad thing, but I also don't run a business. I guess I'm just too dumb to understand.

Re:Niche marketing?

[p0tat03]

This is very true. While I find that Wal Mart's selection is poor, and stock levels even worse, places like Best Buy and Future Shop (its Canadian brother) treat me quite kindly. Where the local EB's have the whole "did you preorder? no? then sod off" mentality for games on launch day, there's no such issue with the big box stores.

I walked into a Future Shop and got Crackdown (for $10 cheaper than EB, no mail-in or anything required, just a markdown) on launch day. Try that at EB and get the evil "did you preorder?" look.

Everyone wants exclusives.

[paladinwannabe2]

Exclusives give me a reason to visit a store that's not based off price and convenience. For instance, if I want a copy of Half-Life 2, I have no reason to visit a nearby GameStop if I can get it cheaper at a nearby Target. If Target is the only one who has it, though, I have to go there- and I will probably end up paying more too, since there is no competition for that title.

While this does shaft the consumer slightly, we only notice because games are normally sold by resellers, not the original manufacturer. (McDonald's, for instance, doesn't allow resellers to sell Big Macs). Lots of things we buy are only availible from one store, while things like grocery stores ususally have a mix of exclusive and non-exclusive items. It looks like Game stores want to emulate the grocery store model.

Re:Support your local game store!

[m0rph3us0]

Honestly, whenever I hear someone say "Support local business X that is competing against big chain Y" I invariably go out of my way not support it. Charity is for welfare cases. There are lots of local businesses that I support, primarily ones that provide a) better service, b) better price.