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Varchild2008 (85.35)

Gamestop vs. Amazon: The Pricing Debate

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August 07, 2011 – Comments (2) | RELATED TICKERS: GME , AMZN

http://www.amazon.com/Elder-Scrolls-V-Skyrim-Collectors-Pc/dp/B0050SZ7LO/ref=sr_1_6?s=videogames&ie=UTF8&qid=1312733441&sr=1-6

You get nothing extra for pre-ordering ELDER SCROLLS  Skyrim  Collector's Edition at Amazon.

http://www.gamestop.com/collection/elder-scrolls-v-skyrim

You get a physical map included (Gamestop Exclusive) by pre-ordering ELDER SCROLLS Skyrim Collector's Edition.

Both offers at exactly the same price.  So which one has the better offer?  Gamestop of course!

So how do those Red Thumbing Gamestop boasting that Amazon sells games for less than Gamestop sleep at night? 

Granted Amazon can sell and does sell games for less but you have to consider that it will take 5-8 business days before you get the game....unless you pile on Shipping Charges on top of the game price.

So while that is the case.... The other hand is Gamestop Exclusive Deals have allowed the company to bundle special deals.

LA NOIRE for example came with an envelope containing exclusive photograph - film strips as part of one of the DLC missions you get bundled with Gamestop's Pre-Order of LA NOIRE that you do not get with AMAZON.

So let me get this straight....  You buy LA NOIRE at AMAZON....  You pay $$$ dnloading the DLCs you missed out on..... And how do you dnload the physical property?   how?

There-in lies the problem....   I personally value the Physical Map for Elder Scrolls very very very highly as I feel it is important.... I own every ELDER SCROLLS game ever made, original copies, limited or collector's edition if they existed for the title....whatever..

I own the physical maps for all of them.  So, I value that feature pretty highly....  Versus getting NOTHING ordering from Amazon.

Amazon can undercut competitors on pricing but Competitors like Gamestop can compete on the very fact you can get the game in-store right away.....and they can produce offerings of physical property you can't get ordering from Amazon.

Also, Gamestop sells special bundles of games and other items when you buy a Refurbished Gaming System from them.

Gamestop can compete with Amazon on pricing as they sometimes do undercut Amazon on pricing.

PORTAL 2  after it was released was maked down more on Gamestop than it was on AMAZON.
Where the pricing stands today might be different but about 1 month after release Gamestop sold the game NEW and USED for less that what was available at Amazon.

So, yeah... I take passionate issue with people chosing to red thumb or green thumb stocks like
GAMESTOP simply just because its  Bricks and Mortor and I am sick and tired of this

AUTO-LOVE

of (AMZN) right now.   Sick of it....  S&P has AMZN as a HOLD right now.... Gamestop has a BUY.

Why?  Cause come on..... Neither business is going under.....they are both growing.

But the difference maker is Gamestop is heading into AMAZON's turf right now through Digital offerings and to ignore that based on panicked worries over MARGIN decline on Preowned or increased Competition from Best Buy is silly.

Let's just ignore Quantity of sale..... Ignore that Gamestop sells games AMAZON does not.....
Ignore this and ignore that and issue our RED THUMB and boast about how we spoke to oodles and oodles of Executives from 10000000  different retailers.

What do Executives know anyhow?    The person with all the facts is the CFO.  Chief Financial Officer is in charge of financial planning 5 years out based on the Executive Team's marketing strategy + cost containment + expansion + overall retail sales model.

Executives can give you a lot of info...  But, they are not the only source.

Power Up Rewards Program from Gamestop is not something AMAZON offers.

About the only equivalent to it is Amazon offering Gift Cards around $15 for preordering certain games from them.  They do not always offer these and not always at $15.00 either.

But the Rewards Program going on at Gamestop is indefinite right now.  You can get some money off or even certficates for Buy 2 get 1 Free through the program along with other merchandise for free.

You can get DLCs for free....  It all depends on how quickly you can earn Rewards Points.
The program is still relatively new but as of today's date they offer a total of 158 prizes you can redeem.

Up to $50 off any 1 item sold at Gamestop if you earn enough points for that is probably their biggest rewards prize offer.  But the $5 certificates are priced at only 4000 points (which I have well over 6000).  8000 points for $10 off any single item.

My point?  

I have yet to see ANYONE red thuming Gamestop because of Amazon that ever bothers to really analyze the 2 companies....thoroughly....

Instead we get:

AMAZON   sells  X game for X price.

And no one cares that GAMESTOP may sell it for a little bit more than that, but bundles the game with free DLCs, and through rewards program you can knock the pricing down quite a bit
and you get the game immediately rather than 5-8 business days.

Nope...  No one wants to do the math!  Too much like work for Motley Fool Caps Pickers.

2 Comments – Post Your Own

#1) On August 07, 2011 at 12:55 PM, Varchild2008 (85.35) wrote:

FORGOT ONE IMPORTANT FACT

Amazon's gift card/certificates  have clearly listed restrictions on what exactly you can use them towards.

One of which is a blanket restriction on Kindle books.

Sorry....You can not use their gift card/certificate deals when preordering certain specific games through Amazon for your Kindle.

What restrictions do GAMESTOP place on their Powerup Rewards Certificates?

TRY   NOTHING!!!!!!!!!!!!!!!!!!!!!!!!

It specifically states with no legalize that you get money off any single item.

I think that can not be stated enough.  Amazon's restrictions include at least 1 other area besides KINDLE but it has been quite awhile since I read the legalize.

So feel free to read the Amazon Legalize on Restrictions for their Gift Card offers for Pre-Ordering Games....

or join up with Gamestop to get restriction free gift certificates.

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#2) On August 07, 2011 at 1:51 PM, ikkyu2 (99.32) wrote:

Wow, where to start with this?

1)  AMZN has customer loyalty because of its best-of-breed front end.  Billions of people who use Amazon have never heard of Gamestop and will go to Amazon first, last and always for all their online shopping.

2)  A lot of those loyal customers have Prime shipping.  Some even get it granted to them free.  Amazon calls this '2-day' but most of the time the shipment arrives the next business day.  Cut out the 30 minutes spent driving to and from a bricks and mortar store, and looking for parking, and I come out way ahead.

3)  Whereas Gamestop is levered to the game industry, if video games disappeared tomorrow Amazon's profit margin wouldn't even notice.

4)  You can use an Amazon gift card to buy darn near anything.  Try buying laundry soap with a Powerup, or whatever you call it.

5)  It is cheaper for me to buy some things via Amazon's Subscribe and Save and have them shipped to me: soap, toothpaste, other staples; then it is for me to buy it at my local discount warehouse.

6)  Loyal Amazon customers get other rewards, like Vine, Associates, and so on.

Every time I've looked at AMZN stock since 1994 I've thought, man, that's crazy overvalued.  But boy how I wish I bought some at most of those times.  Can you really say that about Gamestop? 

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