Best Buy CFO sees 'opportunity' in used games market [update]
Speculation among industry analysts has amplified surrounding the possible purchase of meganormous video game retailer GameStop by big box electronics/media retailer Best Buy. The Dow Jones Newswire (via the Wall Street Journal) followed up with Best Buy CFO Ryan Robinson recently, who, unsurprisingly, wouldn't directly comment.
He responds, however, by saying that his company hasn't been taking advantage of the used game market in the way some competitors are. "We've not developed the capability to the extent that other participants have," Robinson says, calling the used game business a "very margin-rich portion" of the game sales market, and adding, "there's opportunity in that business." Opportunity that Best Buy clearly saw fit enough to enterprise on with a foray into used games in 2005 and another this year -- heck, they even price match new game prices with used game ones every now and then.
Still, Best Buy outright purchasing GameStop would be a real stretch, says BloggingStocks.com. "There's no overlooking the roughly $4.2 billion it would cost to buy up Gamestop, and Best Buy doesn't have that much cash," the piece claims, saying Best Buy wouldn't see a return on the investment "any time soon." We've reached out to Best Buy for comment and have yet to hear back as of publication.
Update: A Best Buy representative got back to us with the stock, "We don't comment on rumors or speculation."
[Via Kotaku]
He responds, however, by saying that his company hasn't been taking advantage of the used game market in the way some competitors are. "We've not developed the capability to the extent that other participants have," Robinson says, calling the used game business a "very margin-rich portion" of the game sales market, and adding, "there's opportunity in that business." Opportunity that Best Buy clearly saw fit enough to enterprise on with a foray into used games in 2005 and another this year -- heck, they even price match new game prices with used game ones every now and then.
Still, Best Buy outright purchasing GameStop would be a real stretch, says BloggingStocks.com. "There's no overlooking the roughly $4.2 billion it would cost to buy up Gamestop, and Best Buy doesn't have that much cash," the piece claims, saying Best Buy wouldn't see a return on the investment "any time soon." We've reached out to Best Buy for comment and have yet to hear back as of publication.
Update: A Best Buy representative got back to us with the stock, "We don't comment on rumors or speculation."
[Via Kotaku]












Reader Comments (Page 1 of 1)
Jerk Face @ Sep 21st 2009 9:33PM
Best picture ever, ha ha..
Solace @ Sep 21st 2009 9:44PM
you mean EVAR!
WINterfang @ Sep 21st 2009 9:45PM
I laughed.
Durden @ Sep 21st 2009 10:08PM
agreed
alioua83 @ Sep 21st 2009 10:28PM
you mean EVAH!!!
Sly (Now with less shake, more bake!) @ Sep 21st 2009 10:58PM
YYYYEEEEEE broski! hit me some fist! BRAHSOME!
WINterfang @ Sep 21st 2009 11:22PM
one of the best pictures OF ALL TIME!!!.
Takamofo @ Sep 21st 2009 11:32PM
Brotally...
Sean @ Sep 21st 2009 9:36PM
Give us more than 5% of what you're going to re-sell it for and you will put Gamestop out of business.
Hafkie @ Sep 22nd 2009 12:18AM
Coupled with the reward zone gamers club benefits that you can already get (for free, totally worth it), this could be the best thing ever.
The Baron @ Sep 21st 2009 9:36PM
Aww dude you just get the sweetest used games ever dude and then you put them on the shelves and they're just like WUPAH AAAAAH and then they just get pitted, like so pitted..
Alton Brown [ XBL: LordToastington, Soon-To-Be-PSN: OrIsItAltonBrown] @ Sep 21st 2009 9:44PM
For some reason I imagined your post being spoken by a slightly-less-nasally John Cleese. Needless to say it was pretty funny.
Shadowbender (Nelson Is Behind You) @ Sep 21st 2009 9:36PM
That pic is intimidating.
Number-2 @ Sep 21st 2009 9:40PM
I like best buy... Just not for games
ToadStoolPorridge (PSN: tennispro_99) @ Sep 21st 2009 9:43PM
Every once in a while they may have a bargain bin with some decent titles in it. They have had some good sales on collector's editions of games as well. As a whole, though, I agree. It's almost never my first choice for where I want to buy a game.
-Vexx- @ Sep 21st 2009 9:41PM
THEY ONLY DO EVERYTHING
Fudui2 @ Sep 21st 2009 9:55PM
Maybe if games weren't 70 bucks a pop there wouldn't be such a big used game market.
Nook @ Sep 21st 2009 9:57PM
the local BB here is doing the whole used game thing for almost a year now, I have yet to buy or trade anything...however that works.
Special Agent Steve @ Sep 21st 2009 9:58PM
1200,000?
ZOMG
That's like... 1199,999 more people than I actually know!?!?!?!?!?!?!!!!!!!!
HOW IS THAT POSSIBLE?
Special Agent Steve @ Sep 21st 2009 9:59PM
Quick question:
Can I fuck on the first date?
Special Agent Steve @ Sep 21st 2009 10:00PM
Translation:
Best Buy CFO likes money.
under13warrior @ Sep 21st 2009 10:01PM
http://www.vgcats.com/comics/?strip_id=287
BRAHSOME!
Alton Brown [ XBL: LordToastington, Soon-To-Be-PSN: OrIsItAltonBrown] @ Sep 21st 2009 10:03PM
That has nothing to do with anything.
You're stealing my job, motherfucker!
HippoHero @ Sep 21st 2009 10:09PM
It relates to the douchebag in the picture, albeit vaguely.
under13warrior @ Sep 21st 2009 10:47PM
they both say BRAH!!
[ArchiGamer] [Nominated for Three Glemmys] @ Sep 21st 2009 10:02PM
The name sugarlove makes me giggle for some odd reason......
DWells55 @ Sep 21st 2009 10:02PM
TOTALLY FREE GO JOIN!
Lurkero @ Sep 21st 2009 10:02PM
Best Buy has a better chance by marketing better deals than Gamestop usually does. Attach some accessories and gift cards to preorders, get more limited editions, etc.
I love Best Buy's reward program also. They have a lot of deals for games and they have a special $10 gift card for every $150 spent on gaming merchandise.
[ArchiGamer] [Nominated for Three Glemmys] @ Sep 21st 2009 10:04PM
Photo=win
Seshan @ Sep 21st 2009 10:22PM
"very margin-rich portion" yeah they give you $20 for a game then sell it for $55.
Mr Khan @ Sep 21st 2009 10:22PM
They killed that price-matching thing, though. A forum-goer at VGChartz who lived at the Test Site out in Utah said so.
http://www.vgchartz.com/forum/thread.php?id=83391
Jesse @ Sep 21st 2009 11:00PM
I work at future shop which is owned by BEST BUY we are doing game trade ins and we pay way more then our competitors for example EB games and blockbuster pay about 15 for halo 3 and we are paying $25 not only that you get a store credit that's good for the whole store not just games!! Also we send the games away to be repaired fixed repackaged and missing manuels re added!! And the games are sold for less then what eb games sell them for as well!!
Number-2 @ Sep 21st 2009 10:42PM
you lie! Why do you lie to me! Why!?
waynski1457 @ Sep 21st 2009 10:48PM
If I act now will I get a free juicer??
Jesse @ Sep 21st 2009 11:15PM
http://www.futureshop.ca/catalog/dept.asp?logon=&langid=EN&catid=27603
Wardo @ Sep 21st 2009 11:06PM
This sounds brokay.
Sly (Now with less shake, more bake!) @ Sep 21st 2009 11:14PM
more like brahmazing.
Jesse @ Sep 21st 2009 11:16PM
Also unlike BEST BUY we do sell appliances and juicers so you could use your used game credit towards your new juicer ;)
Wardo @ Sep 21st 2009 11:33PM
Alright we get it, Future Shop is awesome! Can we move on now?
kevin @ Sep 22nd 2009 12:16AM
sounds like great concept for best buy , but who to say best buy will stay afloat much longer. circuit city was a big store & look what happen to them.plus as it is stated BB does'nt have the funds for such a deal,worst case scenario is best buy get's help from a bank.best buy goes broke cause they can't cover the loan on time or mismangement fucks up somehow.then everything is put on hold for both companies. now gamestop is in danger of closing or will have to be sold at liquation sales just to cover some of the loan. now we as consumers are left with these webstores like Amazon or Ebay who say they will sell you stuff at great deals ,but nail you with these outlandish shipping fees just cause you want the item right away.from the looks of this concept it look like we the consumer or patrons of gamestop get the raw end of the deal in the long run.
Paul Ford @ Sep 22nd 2009 1:28AM
What about a wholly owned subsidiary like Magnolia, speakeasy, or dealtree. They've been buying small companies like crazy and Best Buy is one of the most liquid companies out there right now. They started buying instead of leasing spaces they've got the money but it seems more logical to put kiosks inside of best buys. When your corporate earnings are more than 56 billion in a year with a 21% profit growth goal for investors they could if they wanted.
Davis4ever @ Sep 22nd 2009 2:14AM
It won't matter. Just like Gamestop it will be good.... for a while. Then all used games will be just $5 less than new.