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Looks like Gamestop’s profits are starting to get hit hard.
Gamestop, the massive video game retailer, is starting to feel the fear of the benefits of digital gaming. In a statement by Tony Bartel, the company’s president, estimated that over $100 million in games would be downloaded, specifically through the hardware bundles coming out this season. Bartel compared digital pricing of games to those of movies, and see this as “driving the perceived value of digital goods significantly below that of a physical game.”
While not specifically mentioning whether this applied to consoles or PC/Mac, this likely applies across the board. Gamespot has reaped a hefty reward for its Pre-Owned Games, which allows it to buy used titles and resell them at higher prices. This move cuts out developers and publishers, allowing the gaming corporation to keep all the profits.
While this is a phenomenally successful business decision, companies like Microsoft and Sony have been feeling the effects since the last console generation. Microsoft’s design of the Xbox One, pre-backlash, would have been focused on such digital downloads, allowing the people who make the games to take back some of that resell market. The lower price point accounts for the lack of manufacturing a physical disk, box and inserts.
No response from Sony or Microsoft has been given.