Why REDBOX is good for GAMESTOP
June 16, 2011
– Comments (4) |
RELATED TICKERS: GME
Ok I am throwing up the Scenarios I just listed on Yahoo Finance for DUKE NUKEM or any video game for that matter you rent at REDBOX only to then return 1 day later and buy the video game at Gamestop.
You will see that there is little reason to fear REDBOX and in fact be absolutely thrilled they are offering rentals! REDBOX is going to result in lots of positives for Gamstop.
Day 1) Gamer rents at Redbox for $2.00.
Day 30) Gamer keeps game and pays $60 + tax total.
Correct right?
Now what if we throw in some options with Gamestop?
Day 1) Gamer rents at Redbox for $2.00.
Day 2) Gamer returns video game, buys USED Xbox 360 / PS3 version video game for $55 + tax.
Total: $57.00 + tax.
Savings: $3.00.
Day 1) Gamer rents at Redbox for $2.00.
Day 2) Gamer returns video game...goes home......Digitally Downloads the game onto his/her PC computer for $49.99.
Total: $52.00 + tax.
Savings: $8.00.
Day 1) Gamer rents at Redbox for $2.00.
Day 2) Gamer returns video game. Buys PC game, Brand New Physical Version, for $49.99.
Total: $52.00 + tax
Savings: $8.00.
Day 1) Gamer rents at Redbox for $2.00
Day 2) Gamer returns video game, buys BRAND NEW VERSION of video game at Gamestop (XBOX 360/PS3) version for $59.99.
Total: $62.00 + Tax
LOSS: $2.00.
Of course to avoid suffering a $2.00 loss you either buy the brand new Console game at GAMESTOP or any other Retailer (BEST BUY)..... or you hold onto your REDBOX game for 30 days.
But anyhow... To Sum up what we have above:
1 Option with Gamestop results in losing $2.00.
1 Option with Gamestop results in a savings of $3.00.
2 Options with Gamestop result in a savings of $8.00.
Why would anyone rent a REDBOX video game only to then return it to buy the game at a Retail Store?
Duke Nukem Forever is the type of game that motivates a gamer to NOT want to take *risk.*
You RENT for $2.00. Game stinks....so what? You are out $2.00 instead of $60.00 - Trade Value.
You RENT the game.... You play it and love it and now you want to save as much money as you can in the process of owning it...right? Holding onto that game for 30 DAYS ends up being among the WORST options for you.
There are 4 Options where you SAVE money returning the game to REDBOX....and buying the game at a GAMESTOP or BEST BUY or etc.
It's that simple.... REDBOX will push sales of video games for Gamestop.
There is little reason for a TIGHT WAD..... to choose the "I will keep game" option with Redbox.
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