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Varchild2008 (83.60)

Gamestop Red Thumbs: Read This!

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November 10, 2011 – Comments (4) | RELATED TICKERS: GME

The following is from Gamespot Interview with Obsidian CEO:

http://www.gamespot.com/news/obsidian-on-the-right-way-to-fight-used-game-sales-6343997?tag=hot-stories%3Bstory%3B1

"GS
: Your conference session was probably the first one this year where the words "mobile," "social," and "microtransactions" haven't come up. Is that just because Obsidian is as big as it is? So those options just aren't as viable?

FU: It's our focus. I'm not a believer in the death of the console. And that's because there is no way that 20 million people buy a Call of Duty: Black Ops, and that means the console is dead. I understand people's reasoning behind why they believe something is going to happen with the consoles, but I still think you can be very successful if you know what you are doing. I think you can see that with products like those from BioWare and Bethesda, and the kinds of products they are building with DLC follow-ups. So I think what we try to do is explicitly understand how the kind of products we want to make fit into the market we are targeting. That often means we need to figure out how to make games not just a rental. And how to prevent re-sells back to GameStop. Those are our things to solve. It's different from the mobile and social markets. Their problem is how to attain attachment rate; ours is how to retain our attachment rate. So there are two sides to the coin, but when it comes to us, at least for the big role-playing games, there is a parallel to Hollywood. People still go see Transformers. You can still make money with a $200 million movie. So I still think there is still a place for that kind of entertainment, and there will continue to be..."

4 Comments – Post Your Own

#1) On November 10, 2011 at 5:25 PM, Varchild2008 (83.60) wrote:

My stance has always been that GameStop could lose the Pre-Owned, Re-sell business of video games and they still would be a solid investment....growth story...because they are expanding into many other areas which can and will offset weaknesses in preowned.

But...The main reason I shared this is not to make people think the Re-Sell business will die off.....it may..it may not...

But rather that the CONSOLE SYSTEM isn't going away...

There was an article that was floated that "after Call of Duty Modern Warfare 3 the Console System will die."

Countless articles about how Smartphones and Tablets will destroy Console Systems.

Obsidian sees it differently... And unlike muckity muckity mudslinging media types....Obsidian actually makes games.

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#2) On November 10, 2011 at 6:42 PM, memoandstitch (< 20) wrote:

If resell is dead, GameStop will become Block Buster.

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#3) On November 10, 2011 at 7:06 PM, Varchild2008 (83.60) wrote:

Nope!

Digital Sales growth is huge and will only keep getting stronger and stronger for Gamestop.

In the meantime.. Video Game sales are doing extremely well despite the economic conditions.

If they can sell New Sku Video Games physical and/or digital at stronger sales figures then that is growth.

Besides, if you read the entire interview Obsidian wasn't talking about resell going away.

He was simply saying that people need to design replay value in their video games so games do not so easily get re-sold.

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#4) On November 10, 2011 at 7:09 PM, Varchild2008 (83.60) wrote:

Just because Gamstop is known for their Re-sell market doesn't mean that they live and die by it.

They absolutely do not....

It's like saying that if Best Buy stopped selling Ovens their entire business would collapse.

Nope... Best Buy could stop selling Ovens, Refridgerators, Televisions and it wouldn't matter if they can replace those things with other products.

Gamestop is doing exactly that... If ever a situation occurs where Re-Sell dies off....It won't matter when they are still selling Brand New Video Games Physical or Digital based....

And when they are now into Mobile Phones, IPods, and Tablets.

Gamestop is gaining new Sales/Revenue outlets and those outlets are certainly vehicles to offset any weakness in re-sell.

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