US Retailer Launches Attack on Games Industry Options

[Xbox-Scene]

US Retailer Launches Attack on Games Industry Posted by XanTium | February 1 10:39 EST

From gamesindustry.biz: [QUOTE] Online retailer DVD Empire has closed its games business and launched a vitriolic attack on the games industry in parting. "The video game industry only cares about mass merchandisers like Toys-R-Us, Wal-Mart, Best Buy, etc. They completely ignore the needs and wants of the medium to small game retailers," the company said in a statement on its website. Chief among DVD Empire's allegations are that a lack of price protection coupled with unpredictable changes to the Manufacturer's Standard Retail Price (MSRP) and tiny margins are squeezing all but the biggest retailers out of contention. [/QUOTE] Full Story: gamesindustry.biz and next-gen.biz

[EverestX]

Amen, It sucks for everyone. I prefer the "80% of Video games are Crap" stated in the article. It's true.

The full story on the site is very heartfelt I think. These guys are just sick of getting the shaft from the game industry, and I don't blame them. Don't for a second think that I am saying I'll never buy games again, that's not the case. The fact is the video game industry is simply releasing titles that don't deserve the DVD they are printed on. It's also sad to know that for 5 years these guys have been trying to provide a great experience for customers, but have fallen short. Pretty much the equivalent of an amusement park with tons of rides that all suck, people will come the first time, realize that it was a waste and go else where. Exactly what happened to these folks.

I'd like to add I have never heard of this retailer nor have I never ordered from them.

This post has been edited by EverestX: Feb 1 2007, 04:20 PM

[Verity]

You ever wonder why GameStop and its ilk seem to always push "used" slightly-discounted copies of games (especially newer ones)? This article highlights why they do that. I had a casual conversion once with an ex-GameStop manager and I've seen a few online discussions which confirm that the margins are so low on the new merchandise, they make better margins on the used stuff. so they push the used titles, usually with a wry smile on their face claiming its just as good and cheaper for you all the while knowing they make better profits on the used stuff.

If DVD Enpire only dealt in 'new' merchandise, complete with shipping+handling headaches, no wonder they lost their shirts.

[ChronoZaga]

If I read between the lines I read this as...

"WAAAAAAAAAH! Big business ran my little company out of the business because they can offer customers lower prices, while simultaneously maintaining a better relationship with suppliers. That's not fair, I want that, gimme!

Why doesn't the industry change just for little old me? Why don't customers want to pay more for the same game from me? I deserve more money since I'm small, right?

Why won't manufacturers take back all my unsold copies of 'Barbie Horse Adventures' since they're completely worthless now? That way I can stick them with my problems instead of maintaining lower inventory on hand.

I want price protections from the manufacturers. I mean, if they would only fix the prices of their games properly, and keep the prices high longer, I might be able to make a profit at the expense of all gamers everywhere. Didn't Nintendo get sued for that in the 80s? Oh well, I still want it, gimme!

If only I had the brains to market to a niche audience, or exploit some weakness in the big retailers, with their hulking corporate bureaucracy. No, that's silly talk! None of this is my fault, I'll just blame the world."

...Business is hard in a diverse market like video game retail. The product is the same everywhere and there are a lot of retailers with several different marketing techniques. It's easy to get squeezed out, especially with so many big players in the game, who have been doing this for a long time. Don't go crying foul just because you lost, and expect an entire market to change just for you. If you just can't compete, maybe it's time for you to find a different game.

There are plenty of new players in this particular market that are doing just fine. GameFly, for instance. They came up with a new(ish) business model, and used it to their advantage. I take their success as a sign that the market is working as it should, so DVD Empire is just another company that couldn't compete.

[edit]
To support my argument, DVD Empire says "The only way we can make a profit on an item is to sell it over the MSRP, but unfortunately we are not allowed to do this." That is called price fixing. If anyone told them what price they could or could not sell a product at, that would be illegal. They can sell a game for whatever price they want, the games just wouldn't sell at a price higher than everyone else sells them at.

This post has been edited by ChronoZaga: Feb 1 2007, 04:55 PM

[Exist2Resist]

Thats ok the next gen of video games will be sold online, it will be digitally distributed.
Means all those stores will close down, finally no more EB Games, cant wait for the day.
No more stupid uninformed opinions from those idiots at those stores either.
Can't wait.

[Mr_Milenko]

I feel for these people, They have the right to whine bitch and moan about lost profits.. If microsoft can bitch about us homebrew modders and our cousins who pirate there games then these people have the right to bitch about Microsoft, Sony, Nintendo fucking them with a barbed wire baseball bat we all call the economy.

[quall]

woo hoo

games 20% off!!!

This post has been edited by quall: Feb 1 2007, 05:47 PM

[GeToChKn]

I didn't read the whole article but I can relate to being a little fish amongst the big guys. I get a few calls a day asking if I have an Wii's in stock. If a big place like futureShop or bestbuy can't get them from Nintendo and keep them in stock, there is no way the little guys will even get in on the launch consoles.

[davinator456]

cry me a river

[rocarmy4life]

"US Retailer Launches Attack on Games Industry"

if thats not an exaggeration then i dont know what is...

they simply voiced their opinion...they didnt "Launch An Attack" LOL

[dhrandy1]

woo hoo

games 20% off!!!

agreed

[crobar]

This post has been edited by crobar: Feb 1 2007, 07:58 PM

[xtreme_360fw]

That would explain why they're only called "DVD Empire" plain and simple. I bought Gears of War at Wal*Mart cuz it was like 60 cents cheaper than GameStop so I'm trying to save pennies as well so the huge retailers will get my money if they simply offer a better price even if it's by pennies. This is just that brutal of a market and DVD empire couldn't compete, a good lesson in the economics of the video game industry. Gamefly suprised me with the apparent success as well. Interesting...

=Xtreme=

[chutneylad]

cry me a river

You are a TIT !

[mlmadmax]

I can see where these guys are coming from but at the same time that is the nature of the game.