
CEO Dan DeMatteo gives “the probability of this working at zero”
With GameStop’s share price slipping following the announcement of Amazon’s entry into the pre-owned games market, CEO Dan DeMatteo has dismissed the online retailer’s second hand ambitions.
“I give the probability of this working at zero,” DeMatteo told Edge. “While customers wanted to buy a new, say, Killzone 2, they weren’t going to wait the week or two weeks it took to get the credit, then buy Killzone 2. They want Killzone 2 the day it comes out. They need the money and the credit right now.”
GameStop once trialled a similar scheme but abandoned it after a low level of consumer uptake.
“Electronics Boutique also tried it and failed,” he added. “There's no consumer acceptance. With consumers, there is immediacy for currency when they want to buy a new game. It didn't work for us, and I can't see it working for them.”
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Comments
Hope Amazon Fails
I've bought plenty of items from Amazon, so maybe I'm a hypocrite... but in this case, I hope they fail. This move doesn't make much sense, other than to drive the profit margins of used game sales into oblivion, thereby killing the industry... and the service isn't even that good!
The only way Amazon can compete is because they won't need to staff many employees, taking more jobs away from those youngens that work at the B&M stores. Due to this, they can pay more for the used games, and sell them for less. This is the only way people would choose Amazon over Gamestop or Ebay or Amazon's current system for allowing users to list their used games.
I agree with Dan DeMatteo, Gamestop gives instant gratification for gamers. You bring in your games, get cash and buy new games. Plus you get to see all those lovely used games in front of you so that you can browse the selection. Fast and easy. With amazon, you have to go to their site, select which games you're selling, package them, print a shipping label, fedex the package, wait a few days to get your payment, THEN buy a game and wait for it to ship. The only way I'd go through this trouble is if I was getting more money back from my game and buying games for cheaper than what Gamestop offers. To do that, Amazon would have to do what I stated above, and basically kill the profit margins for all those businesses that provide this service... taking everyone down but themselves, and leading to more economy woes.
Then there's the competition with their own user listed games and ebay. I think Amazon is making a mistake, and in the process, hurting the industry without helping their bottom line.
Re: Hope Amazon Fails
In a free market society, competition is always good and welcomed. So I say welcome aboard Amazon and ToysRus. It only benefits the consumer with more choices.
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