'Amazon is of little threat to GameStop's core business' says EEDAR

Citing an Electronic Entertainment Design and Research (EEDAR) report released in the past week, GamesIndustry.biz is reporting today that, while the announcement of Amazon.com entering the used game trade triggered a 13% drop in GameStop stock, "Amazon is of little threat to GameStop's core business." According to EEDAR, this doesn't mean Amazon is doomed to fail, but that "Amazon and GameStop can co-exist peacefully," which sounds awfully nice to us on the consumer side of things.

How did they arrive at these rather broad conclusions, you ask? "EEDAR conducted a survey and recorded the trade-in value, used price, and new price of 79 game SKUs (57 that applied to the survey) at Amazon and GameStop." After doing so, they arrived at this, possibly shocking, revelation: "On average, GameStop offers a better value on trade-ins by over 3%." Seriously?

To round out the EEDAR report, we'll leave you with this one, astonishing truth: "Amazon's entry into the used gaming market will expand the used market into new territories and make available to new consumers rather than steal share away from GameStop's core business." So, what's the lesson here? Competition: good for consumers, (apparently) okay for retailers.

Reader Comments (24)

If it turns out to be anything like their MP3 service, I'd definitely consider using Amazon for this, as opposed to GameStop.

Generally though, I don't trade in games. I guess being able to go back and play through it again years later, however unlikely that might be to happen, is more important to me than getting $2 off my next purchase.

I should also add that just watching people in GameStop turn in their games for a few bucks, knowing that GameStop will sell them again for 10 times the amount they give for them, makes me feel like I'm getting ripped off.

from what Ive seen, the values are about the same. But I still feel better going to Amazon instead of Gamestop.

Though I might have to go to the 8th circle of hell this weekend to pick up Rune Factory and Pro Evo.

I checked to see what i could get for GH:WT, and they were offering 9 dollars at amazon. Pretty sure that's a rip off worse than gamestop. Guess it depends on the used prices they have though, if they give me 9 and sell for 45 then yea total rip off.

Same reason why Best Buy and Amazon coexists. Amazon is for the thrifty and/or patient shoppers while Best Buy is for the opposite.

In Europe there is a shop called Play.com , they sell games like Mirrors Edge for £17.99 or $25 that's included shiping!

They have a system called PlayTrade and if we take Mirrors Edge as an example that game is as low as £14.40 or $20, and the list goes on.

That said I dont shop at Gamestop anymore, they have to high prices on both new AND used games.

Just to clarify...£17.99 is the price for new game and £14.40 is for a used. I would like to see Gamestop have prices like that......yeah like that's ever gonna happen!

Of course it isn't.

The only reason people would use these awful services if they're terrified of the internet, otherwise, they might as well sell things on ebay, where they'll actually make actual money, instead of get ripped off. That's what Gamestop is for. People who are impatient and terrified of the internet. Especially for those people who are like videogame crack addicts.

Well, they're probably more rationally afraid of something going wrong with the transaction, mail, or customer and getting f-ed in the rear by the person or Ebay, who can basically put binding charges on you per their agreement if they feel it's your fault.

But your point about money stands. Selling your stuff via Half.com will get you $20 more than Gamestop and buying stuff from Half.com will cost you $20 less than Gamestop.

Only a gaming corporation would use the phrase "Is of little threat". It just sounds like something someone wearing a cape would say.

Quick Quiz!
Which phrase is most likely to have been spoken by an evil overlord:

a)"The islets of Doom are of little threat to our fortress of horror"

b)"The islets of Doom are a small threat to our fortress of horror"

c) "The islets of Doom are an inconsequential competitor in the doomsday industry"

I'd never thought I'd see a corporation use pseudo-medeival, D&D syntax.

"Amazon and GameStop can co-exist peacefully,"

I'd never have thought. It seems as though the reporters have dropped a little fantasy into this, probably to spice up their dull lives. Sure it looks like boring competition between two companies, but it's really a gargantuam struggle of wills for the hearts and minds of consumers everywhere! Can they co-exist? Is Amazon really of little threat to the gaming giant? I'd better bust out my +3 calculator; this promises to be a mighty clash of giants worthy to be sung throughout the ages.

Are you actualy meaning this? You write "Especially for those people who are like videogame crack addicts"

You implying that people that play videogames are to stupid to use a computer or internet?

I hope I have missunderstood becaus that did not make any sence to me...

Stopping this right here. He's just saying that people can be impatient and don't want to wait for the internet when buying games sometimes. Everyone be cool. Thanks!

it's an annoying misconception that amazon is "taking on" gamestop with this new service. to me it seems they are just trying to do a little more for their existing game-buying customers, who now won't have to go into any stores for anything.

they're just being an alternative, not a serious competitor. if they were, they would be putting forth much more effort to make the inconvenient "ship it to us first" mechanic less painful.

It's a huge threat to Gamestop's business of getting my used games. I recently traded in a few games at Amazon and was very happy with the process and the results.

Sure I could get more money by selling them via eBay or even Amazon Marketplace, but then I have to hope that someone is willing to buy my game at the price I'm looking for. Doing it this way, I have a guaranteed sell, which is worth a decent amount of time and effort.

I try not to trade in too many games any more, but yearly sports titles and things like Rock Band 1 that I'm pretty sure I'd never play again, this works well. I doubt this will be a huge hit to GameStop's business, but it has the potential to put a serious dent in it.

Amazon buys your games "at a price you're looking for?"

You must be looking to sell low, because I guarantee that listing your game for $1 less than the lowest game in your product condition on Half.com will sell and you'll make 20 bucks more than Amazon.

You're correct, you'd get more money going through another service. However, there's no guarantee that you'll make a sell, and there's more effort involved. Basically I'm paying Amazon to do all that other work and taking a smaller share of the pie.

I'm lazy, so I want to do the least amount of work possible, and still produce results. If you're looking to score as much cash as possible from your used games Amazon and Gamestop are not viable options. If, on the other hand, you just want to get a few bucks for a game you don't plan to play again for as little effort as possible, Amazon is the way to go.

What EEDAR failed to report was the handsome check that was given to them prior to the survey from Gamestop.

I think Amazon will succeed. They're already profitable from other products, so they'll probably be able to offer more for trades. Since GameStop's profit all comes from used, they have to pay less.

I've never had a good experience with GameStop. Ever. If I need to sell a game for some cash I'll put it on ebay. I'll make a lot more than what they'll give me.

And they'll get the game for less than GameStop charges.

Just use Goozex.com, If you've bought games like Dead Space and wound up just plain hating them, and can't take them back to GameStop, then you can list it on Goozex and get full price just about (depending on current Market value, and popularity)

EDIT: Somewhat spammy link and info on said link have been removed.

No dice on the link dude. Sorry.

Well, there's another option I've found. Better trade values, lower prices, and (GET THIS) the staffers usually act like humans!?!?!?!

EDIT: Shameless promoting. And spamming at that. No dice!

'Amazon is of little threat to GameStop's core business' says EEDAR

Reader Comments (24)

Posted: Mar 18th 2009 7:02PM FredFredrickson said

Posted: Mar 18th 2009 7:08PM FredFredrickson said

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Posted: Mar 18th 2009 7:41PM johnperkins21 said

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Posted: Mar 19th 2009 1:21AM johnperkins21 said

Posted: Mar 18th 2009 7:59PM latin trident said

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Posted: Mar 18th 2009 9:24PM mikemaj82 said

Posted: Mar 19th 2009 12:41AM (Unverified) said

Posted: Mar 18th 2009 11:33PM p07h3ad said

Posted: Mar 19th 2009 1:35AM Benjamin Gilbert said

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