GameStop Corp. (NYSE:GME)

Varchild2008 (78.78) Submitted: 8/2/2011 11:58:22 AM

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That isnt true. There is no inventory costs with digital and on Impulse the profit per digital game sold for Gamestop is 30%. Gamestop is now drivibg traffic towards its digital PC games business with recently announced In-store PC digital game sales deals.

I'd like to know where you got your facts from on gross margins. Q1 earnings 2011 does not include Impulse.
One Time Use Codes are cutting into used game sales gross margins so pushing digital sales is the way to go.
The bearish view continues to fail to see that there are costs to selling used physical that go away with digital.

Supply and Demand is one. Digital allows for pricing discounts since costs are less to sell units. So, one can sell far more digitak games than used phys.
Digital Deus Ex 3 is a better deal price and what you get than physical.Gamestop would have made the physical the better deal if digital was a gross margin killer as you wish to portray it is.

Varchild2008 (78.78) Submitted: 8/2/2011 12:04:13 PM

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you do not run out of stock in the digital world!
But, how many times is it that you shop Gamestop and fail to find the game?
what do you do when that happens?

you go o Best Buy or you go to the internet!
Gamestop loses business by failing to have a particular used phys in stock!
Digital pffers pricing discounts over new phys releases just like used phys.

So, now in todays world you go to Gamestop and fail to find an expansion pack for your MMORPG PC game.
now you can still buy it and get it through Impulse or in-store you can ask for it and receive a dnload code.

Digital is far far superior.

Varchild2008 (78.78) Submitted: 8/2/2011 8:47:15 PM

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"that should impact margins severely given the countless cheaper alternatives (search amazon for games and compare prices to GME). "

Took your advice and searched for "Drakensang" on Amazon.
Guess what? Gamestop Impulse is cheaper than Amazon.

Time again and again and again I see Gamestop equal to or cheaper than Amazon offerings without the 24 hour shipping waiting period to actually have the game that you get with Ama-slow.

Varchild2008 (78.78) Submitted: 8/2/2011 9:05:41 PM

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Ok Drakensang: The River of Time isn't exactly fair since it is on sale today at Impulse.

So, I went and price checked LA NOIRE.

www.gamestop.com $49.99 LA NOIRE (XBOX 360)
www.amazon.com $51.89 LA NOIRE (XBOX 360)

Holy Price Markups at Amazon Batman!!!

Reality is I can do this all day/night long and time and again and again and again Gamestop is cheaper and you get to play the game right away instead of the Super Saver Shipping Program which means you wait 5-8 business days for the game to arrive.

Varchild2008 (78.78) Submitted: 8/2/2011 9:14:08 PM

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With Amazon Operating Margins around 2% or less and expenditures out pacing sales growth, Amazon can no longer be the tried and true "cheaper than everyone else" source for shoppers.

Price compare!!!

Don't just post up on Motley Fool statements easily disproven that Amazon is Amazon so therefore whatever they sell is cheaper in price.

That's what everyone believed about Walmart Stores for quite a long time until suddenly Customers began flocking to Dollar General and other Dollar Stores..... People spend HUNDREDS of $$$$$s at Dollar Stores now.....money that used to go to Walmart.

If Walmart can be beaten all of a sudden on pricing.... so can Amazon and you can see for yourself where Gamestop beats them.

Price Compare!

txfan2424 (80.56) Submitted: 8/4/2011 6:06:56 PM

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You've had a very passionate reaction to my post - I'm sorry our difference in opinion bothers you. Here is what I found on my search for one of the titles you mentioned La Noire:

AMZN:
New: $51 and Used: $30. You can also buy it new from 47 individual sellers for $35
http://www.amazon.com/s/ref=nb_sb_noss?url=search-alias%3Daps&field-keywords=LA+NOIRE&x=0&y=0

GME
New: $49.99 and used: $44.99
http://www.gamestop.com/browse?nav=16k-LA+NOIRE

I'm having trouble understanding your opinion on the pricing issue (given you can buy it new for $35) and you look foolish for your rant on "just posting on Motley Fool w/o looking."

It is also a matter of titles. Here are the results for Call of Duty: Black Ops (a very 'hot' title right now):

AMZN
New: $53, Used: $30; new from number of independent sellers: $42
http://www.amazon.com/s/ref=nb_sb_ss_c_1_22?url=search-alias%3Dvideogames&field-keywords=call+of+duty+black+ops&x=0&y=0&sprefix=call+of+duty+black+ops

GME
New: $60; Used: $55
http://www.gamestop.com/ps3/games/call-of-duty-black-ops/77794

By the way, my thoughts are based on conversations with executives at GME, BBY, THQ, Xbox and a number of gamers.

Varchild2008 (78.78) Submitted: 8/7/2011 10:14:17 AM

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Those are different price quotes then what I had which make sense as Amazon will change their prices from 1 day to the next.

Amazon was not selling LA NOIRE for cheaper than GAMESTOP when I quoted....nice try though!

Varchild2008 (78.78) Submitted: 8/7/2011 10:38:16 AM

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Oh and while I do not have the privelidge to be able to speak to C.E.Os of any company....I can channel check and speak to store managers/employees which I do....GME, BBY, FYE (which also has a used games business), etc.

Impulse Team member ZOOMBA has stated that it is 30% that goes to Gamestop/Impulse..... Not 25% anyhow. So you have margins mistaken...regardless of what C.E.O.s you spoke to.

And the deals you get through Digital Downloading Games on IMPULSE is how Gamestop can compete against AMAZON anyhow.

Also, you conveiniantly leave out that GAMESTOP's version of Call of Duty Black Ops: LTO
also includes free DLCs bundled with it. Since you can pick it up in-store you get it same day without the paying the extra
high shipping charges as well!

http://www.gamestop.com/ps3/games/call-of-duty-black-ops-limited-edition-with-dlc/91519

You get the First Strike Map Pack for free through GAMESTOP.

http://www.amazon.com/gp/product/B00519C7JC/sr=8-1/qid=1312726793/ref=olp_product_details?ie=UTF8&me=&qid=1312726793&sr=8-1&seller=

I don't see that at Amazon!

Also the POWER UP Rewards program also helps bring down prices at GAMESTOP. You conveiniantly didn't bother to consider that.

I can get games for $5 to $25 off depending Rewards Points which reflect the level of Trading in games to buy Preowned Games or New Games or etc. (can not provide link as you need to log-in after signing up).

And those certificates can be used for ANY in-store Gamestop purchase. Any single item...so it isn't just games.

Not considering these factors.....and Gamestop / Amazon digital downloading pricing is competitive against each-other.
But, I personally see Amazon prices beaten by Gamestop regularly.

So I don't bother shopping at Amazon where the "Free Shipping" means waiting for 2 weeks for the game.

Varchild2008 (78.78) Submitted: 8/7/2011 10:39:13 AM

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I'd personally shop at BBY before ever considering AMAZON.
I don't see the value in waiting 2 weeks and usually missing out on DLCs.

Varchild2008 (78.78) Submitted: 8/7/2011 10:41:00 AM

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Factor in the 1 Day Shipping Price versus In-Store Pickup pricing and you see the difference is obvious.
B&M is always cheaper.

Varchild2008 (78.78) Submitted: 8/7/2011 10:57:28 AM

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What about the library of Video Games that Gamestop sells and Amazon does not sell?
Mactabilis comes to mind.... It is available at Gamestop / Impulse..... Not Amazon.

Also:

AMAZON:

DIN's Curse: NEW $20.77 USED: $14.50

GAMESTOP / IMPULSE

DIN's Curse: NEW $19.99

Gamestop sells it cheaper!

And furthermore.... Only Gamestop/IMPULSE sells the expansion pack DEMON WAR.

http://www.amazon.com/s/ref=nb_sb_noss?url=search-alias%3Dvideogames&field-keywords=Din's+Curse+Demon+War&rh=n%3A468642%2Ck%3ADin's+Curse+Demon+War&ajr=0

Amazon just gives you an ERROR message.

Varchild2008 (78.78) Submitted: 8/7/2011 11:12:24 AM

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WHAT ABOUT: The BUY 2 get 1 FREE Preowned deals at Gamestop?

What about that???

Factor that into your facts?

Seriously.... I do not see AMAZON offering Buy 2 get 1 free deals with their Preowned games.

They can try to mark down prices on Preowned to beat Gamestop but I regularly get notifications sent to me
through the Power Up Rewards Program for these 2 for 1 deals and other deals....

And I recently discovered trade-in value through Power Up Rewards beat Amazon for Street Fighter IV last month.

The fact is... When you only analze an extremely small world view of the facts.. you are not presenting the whole truth.
Just a biased analysis.

You have to look at everything... Not a select few things and then suggest Amazon sells games for less.

Varchild2008 (78.78) Submitted: 8/7/2011 11:17:01 AM

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I just checked.... Besides the occassional Buy 2 get 1 free preowned deal at Gamestop In-Store during special sales days,

The Power Up Rewards Program also offers certificates for this deal at 7,500 pts (which I am already close to and may reach when I get around to trading in more games soon).

So.... You need to look at the rewards program at Gamestop offers here...really...

All that talking with Executives and you fail to even factor the rewards program or the Impulse Digital Dnloading prices
or the fact that Amazon doesn't sell as large a library of video games as Gamestop now that Gamestop has Impulse...

You fail to look at an awful lot of things despite your access to executives that I do not have.

Varchild2008 (78.78) Submitted: 8/7/2011 12:59:30 PM

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I just love how KINDLE customers can not use the Video Game Pre-Order Gift Card deals from Amazon.... They restrict these
money off cards they provide to pre-ordering certain specific games.

Gamestop does not restrict.... 4000 points gets you $5.00 off.... If you are a heavy trader of games and buyer of preowned
you will win out through Gamestop.....especially considering IMPULSE as another factor on pricing.

IMPULSE provides sale deals on games...like the aformentioned Drakensang.... Which mean you get the game significantly cheaper than Amazon offers the same game on those days.

So while you may find Amazon selling a game for less than Gamestop due to a recent Mark Down on Amazon,

Such can be said with GAMESTOP IMPULSE.....

How on Earth can you just tell everyone....blanket statement.... AMAZON = CHEAPER always and forever? It simply isn't true.

Varchild2008 (78.78) Submitted: 8/7/2011 1:07:51 PM

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LET's COMPARE ANOTHER VIDEO GAME!!!!

AMAZON: Deus Ex Augmented Edition Human Revolution PC GAME

Pre-Order Bonus: You get 2 different weapons bundled in the game: Human Silver Back Dbl Barreled Shotgun + Longsword
Whisperhead Supressed Extreme Range Sniper Rifle

http://www.amazon.com/Deus-Ex-Human-Revolution-Augmented-Pc/dp/B004EIOH80/ref=sr_1_2?ie=UTF8&qid=1312736460&sr=8-2

GAMESTOP: Deus Ex Augmented Edition Human Revolution PC GAME (through IMPULSE)

Pre-Order Bonus: You get Deus Ex Game of the Year Edition + Deus Ex Invisible War + Explosive Mission Pack DLC

Sure Amazon's sale price is $57.54 and Gamestop's is: $59.99.

But, those 2 games you get are $9.99 each or almost a $20.00 savings.
And I personally value a Mission Pack DLC worth more than an additional weapon in the game DLC.

The better offer here is GAMESTOP. Not AMAZON.

Varchild2008 (78.78) Submitted: 8/7/2011 1:12:44 PM

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Oh and this is supposed to be about INVESTING!!!

How is AMAZON the better investment here if they are living with a whopping 2.5% less Operating Margins
than Gamestop?

Gamestop 4.5%
Amazon 2%

With expenditures outpacing Amazon's sales...an expected Global Double Dip Recession will slam AMAZON a lot harder
than Gamestop because of the Margin Contraction going on at AMAZON.

Why won't people see that??? You want to EXPECT Gamestop's margins to contract which so far isn't the case.

So you RED THUMB Gamestop speculating a margin contraction that has yet to occur.

While.....Amazon's Margins HAVE BEEN CONTRACTING!!!!!! And the C.E.O. on the Conference Call basically said "Not to worry about the margins."

really? Don't worry about Amazon's Margins which have been contracting but go ahead and worry about Gamestop's margins which you speculate WILL contract.

Well.. I speculate an increase of Preowned Games sold because of the One Time Use Code lowering Margins..
Sure...Gamestop has to drop the pricing down $10.00, but in a deep recession that may push the game faster and more copies of it as well...it is $10 cheaper now for customers.

Customers win out.... Those that do not want to play Multiplayer....will still buy games that are heavily focused on single player.

sylance (< 20) Submitted: 9/20/2011 12:04:56 AM

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Um... wow.