The four publishers behind GameStop's domination

by Alexander Sliwinski on Apr 3rd 2008 12:45PM

GameStop has revealed that merchandise from only four publishers made up more than half of its 2007 new product sales. GI.biz reports out of the 40 publishers and manufacturers with goods sold at Gamestop, the top new product sale figures came from Nintendo (21%), Sony (17%), Microsoft (16%) and Electronic Arts (11%).

Those statistics are only for new products; GameStop admits that its used market creates "significantly higher" profits for the company. The company generated $7 billion in sales last year and continues to expand at a rapid rate. Remember, every time you buy a used game from GameStop some Mom & Pop shop dies ... Oh, who are we kidding, they're already dead. All hail the GameStop overlords!

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Tags: ea, Electronic-Arts, gamestop, microsoft, nintendo, sales, sony

Reader Comments (52)

Mom & Pop shop? I live in Houston and Ive never seen a Mom & Pop videogame store. B4 Gamestop it was Toys R Us Kmart or Sears.

Within in the 10mi radius i am located in there are no less than 12 Gamestops, 2 Gamestations (Indie shop that deals more with PC parts and retro), 1 Video Game Hut (no lie, it's called that... they have a good XXX section .>), and aproximately a BILLION retail stores like WorseBuy, Radiohut, J-Mart, and Toys Am We that sell video games...

I think our army needs more reinforcements if we're ever going to compete ;)

I actually prefer GameCrazy. Thats where I got DarkSector, Ao2, COD4 for both PS3 and 360, Assassins Creed, mah PS3...wait I havent bought ANYTHING at Gamestop since Halo3. I just like GameCrazy better for some reason.

Fenix, there use to be a number of indie shops around here. That shopping center on Richmond and Chimney Rock had a small shop for several years. And Dynasty Mall over on Bellaire had a combo game/anime shop.

In the end, these shops got crushed because their margin on new games was even worse than Gamestop's, and they didn't have the infrastructure to run a sophisticated pre-order/used games racket, which is where the profits come from.

Wow really? Im serious, I only used to get my games at Toys R Us off of 45N next to teh Old Honda dealership they closed, or Kmart or MontgomeryWards lol member that? Then at 16 when I got my own $ I started buying games at the mall at Electronics Boutiq before it became crappy EBGames and went to the Gamestop Alliance Hell.

While not exactly a mom and pop shop, Gamestop bought out all the Rhino Videogame stores in the southeast a couple years ago and it was pretty much the worst thing ever.

The lifetime warranty on all games disappeared, trade in values went down 20% and used game prices went up 20%.

F*** off gamestop.

LOL the picture/speech bubble is classic.

I for one welcome our robot overlords and our impending doom... DOOOOOOOOOOOOOOOM.

But really, what can i say, i work for them :(

Would you like to reserve Sims 3, Gears 2, Wii Fit, or ... well i would put a sony game here... but there arn't any good ones.... (Resistance 2?) with your doom?

MGS4, LBP, KZ2, White Knight Story, and GOW3 just bitchslapped you back into reality

@PojoMofo

I thought i said good games?

---

Ok, in order to prevent any flame wars.... the PS3 has some good games. System Update and Folding@Home just to name two (kidding.... kidding)

-_-

I'm not going to bash on PS3 no moar k.

Hey paragraph you dont offer Haze? LMAO!

@pojomf
Seriously though the only exclusive games to offer PS3 pre-orders for are MGS4, GranTurismo, FF, Wipeout HD, Tekken6.

Your average gamer doesnt know WTF LBP, White Knight Story and Resistance are it was ok but its not a recognized franchise like those other games I mentioned. Heck, even Killzone 2 might be better than those.

i was interested in haze since i found out about the play dead feature. the co-op and nectar parts sound good i just need to see more

It is posts like these that have convinced me that many many eb/gamestop employees are complete idiots. I bet this is how you sell stuff too, with a lolsony and dumbass "wit"

O Gamestop, which art in every town, hallowed be thy pre-orders, thy discount cards be bought, thy prices be honored, in California as they are in Ohio. Give us this month our monthly Game Informer, and forgive us our hasty purchases as we forgive reviewers that gave us inaccurate reviews. Lead us not into Best Buy, but deliver us from GameCrazy. For thine are the used game sales, and the trade-ins, and the pre-orders, forever. Amen.

Do you have a gamestop flyer right beside your bible?

Nope. I'm just that damn good.

Hey! You got christianity in my game shopping. mmmmm nutty.

That is very close to being the best post I have ever seen on Joystiq (and might very well be the best).

Cheers to you for brightening my afternoon!

I owned my own video game store, and closed because gamestop came to town.

Just couldn't compete with the stock. My prices were MUCH cheaper on used and such, but I didn't have the budget to keep 100k in stock on hand at all times like GS.

Looks like someone should have invested in Barnes and Noble ;)

Sorry man :( Really....

if you were going to close down you should of done some really loopy shit the last few months -

set up an intellivision on an old b/w 19"

create some bloodrayne inflatible dolls

encourage WoW lan party ingame weddings - everyone dressed up

force your employees to cosplay while they work

I did pretty well when we closed. I had a tournement area and I took it home. One room with four highdef tvs and 4 xbox's all on live in one room was nice.

I also kept 220 brand new games on a ten foot shelf for myself. I slowly retruned/traded those in for two and a half years to pay for every gaming thing I desired. There was twice I had pre-order bills at GS for over 1500 dollars in one day heh heh. That kids head about exploded.

So I had fun, made many new friends that are close friends today, and got tons of gmaing loot. Still get swag from time to time from companies, so I can't be bitter. :)

I just reserved my PS3 copy of GTA4 yesterday. Thanks GS!

No problem. Can I interest you in a subscription to Game Informer?

I'll take that as a yes. I can just add the subscription cost to your preorder tab.

You know, Matt, we're expecting that GTA 5 will be available for the PS3 in 2010. Demand is going to be huge, so I don't know how much longer we're going to be able to take preorders for it. Can I get $5 from you to reserve your copy now?

It would be a good idea. If you don't preorder now, I'd say it's pretty unlikely you'll be able to get a copy on launch day.

Say, Matt, once you're gaming out on all that GTA4 action, you're really not going to have time for all those other games! Why don't you go ahead and sell us your Burnout: Paradise?

Here, I'll just add the $15 dollars to your preorder, and it'll be that much less for you to pay on launch day!

Oh, before you go, Matt, you're really going to need get some driving practice in, if you're going to be on the top of your game when GTA4 comes out? Don't want to get your 'butt kicked' in online multiplayer, do you?

Let's see. I think Burnout: Paradise would be a great game to hone your skills with.

Holy crap! Can you believe these publishers want $60 for a brand new copy of this game? What a fucking ripoff! Pardon my French, that's just how us 'extreme gamers' roll.

Any way, I can do you a solid here. We have a used copy of Burnout: Paradise in stock right here, and I can let you have it for just $55. Sound good?

Nice Copa. Very nice.

"No"

"The gamers prayer"

whoops! This was in response to Worst Review Evers excellent post

I don't understand why people still buy used games from Gamestop, or why people still sell their used games to them. They buy used games for practically nothing and then turn around and sell them to their customers for 5 dollars cheaper than the New game. Ridiculous, especially with ebay and what not.

*cough* EDGE card *cough*

$54.99 for COD4
-5.49 for EDGE Discount
=49.50 Total (don't quote my math)

Do it three times and $15 isn't so bad for a cruddy mag....

You have to understand that Gamestop prices based on demand, if something is in demand it costs a lot, don't expect something like COD4 to cost next to nothing used when people are willing to pay $55 for it.

Now, if you're looking for Acme Arsenal used, yeah, it's going to be cheap.

fact of the matter is, sucky games are cheap, good games cost monies. Life sucks, you die, get over it ;P

I know right!?

I keep telling people to stop buying used games because the retailers make an assload of money on them and developers never see any of it. Not to mention that it's a total rip-off.

@J

Thats not true, you're making it seem like we're totally raping the devs.

Used games start out as used games, always.
When that used game it gets sold, and a infinitesimally small amount of money goes to the developers.
That game comes back in, and is "bought" for a scant amount of money.
Then we rape that game for profits like you wouldn't belive ;)

So devs get the money they normally would get for that copy.... just not from subsequent sales, and while i'll be the last to say they don't deserve more money, it's not on them to get more money from used sales since it's one copy getting sold more than once.

Don't hate the playa, hate the game :P

I buy used games for 2 reasons.

1. If I can save a dollar, and get the same experience as new, I'm going to save that dollar. More dollars, more games.

2. I can return them within seven days for the price I paid for them. So if I buy a stinker, I get my money back. Not store credit. This has saved me from several bad purchases.

Now selling games? Not to them of course. I'll sell to my friends first, CAG second, eBay third, and never to GS.

I like trading in my games at Gamestop. I know, I could get more for them on Ebay some shit like that. But that is like, a lot of work.

have you used e-bay recently. They've idiot-proofed and streamlined it to the point that all you need to ship something is a box and tape.

Shipping labels? Automatically generated and paid for online, printed in your printer. Shipping? Have FedEx come to your house to pick up your package.

So if you plan to trade in a stack of 20 videogames, do yourself a favor: go to your nearest office supply store, buy 20 media mail envelopes for 5 bucks total, go home and ebay the living shit out of your collection for 10 times what gamestop will give you.

When you start factoring in things like time (you go to GameStop anyway, not to the post office) and money (PayPal takes money off the top as well as listing and selling fees), it really isn't that much of a better deal.

Plus, GameStop isn't exactly making out like the bandits everyone is claiming them to be. Ever see those 10,000 copies of used Madden games that come in every year? They don't sell. Same went with all those copies of Crackdown and whatever major seller shows up. They do eat a lot of costs with games they'll never sell.

why do people hate on the big electronic retailers like best buy and Ciruit city?

whenever ive wanted a game they always have plenty of copies at the regular $60 price, no big lines, just go in, pick it up and bounce..i dont get hassled for pre-orders, or accessories and as i said they always have plenty of copies.

i get most all my gaming stuff from Bestbuy and Circuit City.

Plus, get a Best Buy rewards card and for the cheap price of you throwing away junk mail you already get, they send you money back for buying from them. $5 back for ever 6 games you buy is nice.

wow gamestop employees are annoying in the stores AND on the internet! who knew?!

also i forgot to mention, thanks to the retailers..ive never had to wait in soem ridiculous line to buy a damn game on release.

when halo 2 AND 3 came out, i went out at 12am, walked into walmart, and walked out 5 mins later with a copy.

same with COD 4 and all major games that came out this past holiday.

and shit i got mass effect a week early at kmart.

Last Mom & Pop games store I saw closed down 15 years ago.

Pretty sure you just used this pic 3 days ago

Anyone that preorders KZ2 should immediately have their license to post on the interwebs revoked.

Gah...that was a f***ing reply.

Small time game shops aren't exactly that great. Ever read Acts of Gord? If you think GameStop employees are pains in the ass, try dealing with an independent game shop owner. Talk about arrogance. Great, you own a video game shop, good for you. I prefer the sterile Best Buy experience. You get the game you want, buy it and go. No hassling from the dumbass owner trying to tell you that you shouldn't be buying a PS3/360/Wii because a PS3/360/Wii is better. I had enough of that crap when I was 10 during the whole Nintendo/Sega battle. Some 30-something fat guy was telling a 10 year old that his parents hate him because they got him a SNES instead of a Genesis. Thanks, that's why I came in the store, finally someone who understands what I want out of my video game buying experience. The Joystiq comment section is tame compared to a game shop owner. He'll make your entire purchase experience miserable.

I'm frankly glad the small timers are gone. There just isn't any benefit to them. Arrogant owners, poor selection, exact same price.

I've had that exact same experience in both Best Buy and GS. Arrogance and opinion are not confined to just indie stores.

Unless of course the guys at BB and GS were just disgruntled forme indie store owners who had to go get a job after closing down their own stores and are just trying undermine the corporations customer base from the inside to create a market for their own indie stores once again.

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The four publishers behind GameStop's domination

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