Pachter: So Far, GameStop Not Impacted By Online Pass

August 20, 2010 -

Michael Pachter, gaming research analyst for Wedbush Morgan Securities, says that schemes to recoup cash from used game buyers doesn't seem to be having an impact on sales at GameStop. In a post-financials report on the retailer, Pachter said that the country's largest games retailer remained unscathed in its latest quarter and that aggressive code-based schemes for used games weren't hurting the retailer’s bottom line. This could be because most of these schemes from EA and THQ (in a small measure) are targeting multiplayer, which GameStop says only 25 percent of used game buyers are interested in.

"The company has not seen a negative impact on used software sales from first-use codes or new competitors in the space," Pachter said. "The company estimates that only 25 per cent of used game buyers play online.”

Naturally EA and THQ have just barely rolled out such schemes on a couple of titles. We'll see how it affects used games sales of titles like the latest Madden game in the next quarter. Pachter also shared his pessimism on GameStop’s plan to create a digital market space to sell DLC.

"We remain skeptical about how GameStop will participate in digital distribution," he said. "After a successful trial run in 35 test markets in the spring and summer, the company will complete a full DLC kiosk rollout in Q3."

"While we agree that the DLC opportunity is large and growing, we are skeptical that it will be a sales growth driver. Rather, we think that DLC will at best forestall the inevitable cannibalization of physical disc sales and allow GameStop to capture a small percentage of this cannibalization, with relatively insignificant margin contribution."

Source: MCV UK


Comments

Re: Pachter: So Far, GameStop Not Impacted By Online Pass

Without having seen Gamestop's plan to sell DLC, I'd have to question how they think they can legally do that.

Also, I think we're at least another quarter or two away from really seeing the negative effects of used game sales. Lets see how well Gamestop is feeling in Q3 2011.

-- Dan Rosenthal

-- Dan Rosenthal

Re: Pachter: So Far, GameStop Not Impacted By Online Pass

How do they think they'll get away with this?! I'm sure they'll do something illegal in all 4000+ stores and the international corporation will be sunk by a lawsuit! ...!!! 

Ohwait, no... they're more likely allowed to sell DLC because of a business partnership between themselves and the publishers.  Talking to gamers in person, enough of them don't even know how to get their Xboxes online that it's going to be a very, very long time before publishers can give the finger to retailers like GameStop entirely by doing away with physical media.

This initiative means little more than letting gamers buy an $8 DLC pack rather than spending $20 on points they won't use... and encouraging GameStop's umpteenthousand register monkeys to suggest DLC alongside game purchases.

 
Forgot your password?
Username :
Password :

Poll

Will an M rating hurt Batman: Arkham Knight's sales?:

Shout box

You're not permitted to post shouts.
ZippyDSMleeEh still rather subjective… the haters would be better off going after teen and beauty rags and magazines than fiction, fiction follows reality and going after fiction tends to turn into a bullying fest’s… plus its fiction its unrealistic to start with….02/27/2015 - 1:10am
MechaTama31That's a pretty difficult anatomy to break.02/26/2015 - 11:09pm
MechaTama31"the way her animations repeatedly break her anatomy" <-- I'm sorry, but we are talking here about the woman who can roll up into a little ball and live to tell the tale, yes? ;)02/26/2015 - 11:09pm
Andrew EisenAs far as examples that could be culled from female game characters though, that one's pretty mild.02/26/2015 - 9:11pm
Andrew EisenNot as much the heels or the suit in and of themselves but certainly the way her animations repeatedly break her anatomy to show off her lady bits.02/26/2015 - 9:10pm
E. Zachary KnightWell, Samus's heels are certainly impracticable, but I wouldn't really call her Zero suit objectified. I don't really feel that the new Lara Croft is objectified either, but that is my subjective opinion.02/26/2015 - 9:08pm
Andrew EisenTomb Raider: No but we haven't seen much of anything yet. Samus: Yes.02/26/2015 - 9:07pm
ZippyDSMleeWould you call the new tomb raider objectified? WOuld Samus Aran from the new Smash bros be objectified?02/26/2015 - 9:02pm
WonderkarpI'm hoping they put the rest of the comic book ghostbusters in there. Ortiz and Rookie(From GB the game)02/26/2015 - 8:38pm
Wonderkarpghostbusters board game is doing great. getting close too a 3rd extra playable Character. Ron Alexander.02/26/2015 - 8:37pm
Andrew EisenSmurfette is not subjective. If there's more than one female character, it's not Smurfette. Anyway, as with everything on the list, Smurfette is, in and of itself, not necessarily a bad thing.02/26/2015 - 8:32pm
Andrew EisenI think there's 5 women (out of 15, I think) but other than one being a bit more "hippy" than the others, they pretty much all have the same body type. Especially when compaired to the huge variety of male body types.02/26/2015 - 8:31pm
Wonderkarpso I dont see Smurfette as a bad thing. Unless like all your female characters are Smurfette. remember the Smurfs also had Sassette02/26/2015 - 8:29pm
E. Zachary KnightOne good example of the larger issues is one Anita used in the presentation, Blizzard's Overwatch game. There are a dozen men in the game with a dozen body types. But there are only 4 women with 2 body types, but 3 of them have the same one.02/26/2015 - 8:28pm
Wonderkarpthe smurfette thing is subjective to how many female characters you have. Take Sonic for example. You have Amy, who is obvious smurfette, but there's several other female characters now without that. Including the original animated seriescomics with Sally02/26/2015 - 8:28pm
E. Zachary KnightAE. Very true. I think that is where I was going, but it didn't come out right. Jack Harkness is sexy but not objectified. Whereas, a women would have to be objectified in order to be "sexy" in most games.02/26/2015 - 8:26pm
E. Zachary KnightAnd as Andrew pointed out, there is a big difference between a sexualized man, and an idealized man. But for some reason, there is no distinction between women in games. For the most part.02/26/2015 - 8:25pm
Andrew EisenI think one of the issues we run into repeatedly with these conversations is the confusion over "sexy" and "sexually objectified."02/26/2015 - 8:24pm
E. Zachary KnightYet, for some reason, in orde rto have a sexualized women, she must be wearing lingerie or a bikini. Can't women be sexual and still dress for the job at hand?02/26/2015 - 8:24pm
E. Zachary KnightThe problem I have with complaints of "sexualized men" is that men don't have to wear speedos to be sexualized. Captain Jack Harkness from Torchwood/Doctor Who, was one sexy man, but he spent 99% of his time in a WW2 soldier's trenchcoat.02/26/2015 - 8:23pm
 

Be Heard - Contact Your Politician