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Businesses Entertainment Games

GameStop buys EB 164

Posted by Zonk from the the-conglomeration-game dept.
Dram writes "Business Week, among others, is reporting that GameStop will buy Electronics Boutique for $1.4 billion. Hopefully this will allow both chains to better compete with Wal-Mart and Best Buy for our gaming dollars."
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GameStop buys EB More

GameStop buys EB

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  • Walmart & bb (Score:3, Interesting)

    by nb caffeine ( 448698 ) <{moc.liamg} {ta} {enieffacbn}> on Monday April 18, 2005 @03:10PM (#12272555) Homepage Journal
    Since I refuse to shop at walmart and theres no BB within an hour, my local EB is my first and usually only stop to buy games. There are actually 2 in my home town, one that sells mostly new games, one that sells mostly used. I can always find a copy of the game i want used (within a week or two of being released even! saw copies of halo2 used for $40 or so less than week after its debut). So, i hope this deal doesnt (negatively) impact the used games market. While i would love to support developers and buy everything new, i really dont have the cash for that.

    • Re:Walmart & bb (Score:1, Informative)

      by Anonymous Coward
      Gamestop is very much into the used game market. More so than EB. In fact, I hit Gamestop way before EB.
    • At my local mall, EB and Gamestop are less than 20 feet from each other. Most other malls I have been in are similiar. There is also a Kmart, Best Buy, Circuit City, Target, and Walmart with 5-20 minutes of each other.

      EB and Gamestop are already clones of one another with Gamestop have a bit more floor space and a better selection of PC games. I see this as nothing but bad news with an elimination of competition.

      On the bright side it means there might be some close out deals at EB soon.

  • Well (Score:3, Insightful)

    by Sv-Manowar ( 772313 ) on Monday April 18, 2005 @03:11PM (#12272576) Homepage Journal
    "Shares of Electronics Boutique rose even higher -- up $14.42 or 35.1 percent, to $55.54 -- in trading Monday morning on the Nasdaq Stock Market."

    Judging on the current volatility in the games market, some people would decide to sell any stock they own at this point. It would probably be worth remembering about the PS3 and Xbox2 being just around the corner. This buyout will create a company definitely worth watching.

  • Um... (Score:5, Insightful)

    by GoodbyeBlueSky1 ( 176887 ) <<moc.liamtoh> <ta> <sknabXeoj>> on Monday April 18, 2005 @03:13PM (#12272588)
    Hopefully this will allow both chains to better compete with Wal-Mart and Best Buy for our gaming dollars.

    I don't understand, both GameStop and EB suffer from varying degrees of suckiness. I've had to deal with enough crap from both stores to wish they'd just go out of business altogether.

    While Walmart and Best Buy might not be all that great either, they are ALWAYS, WITHOUT EXCEPTION cheaper or equal in pricing to GameStop/EB for new games.

    Used games are a different story, but when I see games that retail new for $19.99 selling for $17.99 used, or $49.99 games selling for $44.99 used, I feel like you're a sucker for buying used games there (this intarweb thing works pretty well for that). On top of which is the fact that you won't get more than $5 cash/store credit for selling that $49.99 game that they turn around and sell for $44.99. Bastards.

    Mod me a troll if you must, but I doubt I'm the only one with these complaints.

    • Re:Um... (Score:4, Interesting)

      by ivan256 ( 17499 ) * on Monday April 18, 2005 @03:20PM (#12272662)
      It used to be that Funcoland and EB were both great. Then GameStop bought Funcoland and turned it to shit, and EB dropped their customer friendly return policy. Even more recently both stores have adopted a hostile policy of pushing pre-orders. Perhaps together they can propel the customer service level to lows previously unobtainable in a gaming store.

      Somebody should remind these companies that they are value-added retailers. If they don't go out of their way to please every customer, then there's no reason not to buy your games at Wal-Mart. That means they shoud stock enough games and drop the pre-order shit, and they should have a return policy that doesn't violate the laws of most states.
      • they should have a return policy that doesn't violate the laws of most states.

        Can you please elaborate? I've never had to return a game before, so perhaps that's why, but I don't know what you're referring to.

        • Re:Um... (Score:4, Informative)

          by generic-man ( 33649 ) on Monday April 18, 2005 @04:24PM (#12273569) Homepage Journal
          In Florida, a woman's video games were stolen and then returned by the thief to EB for store credit. EB then resold the games in violation of Florida state law, which requires at least a 30-day wait to resell used goods.

          Ivan256, the original poster, used this one incident to imply that Electronics Boutique has a corporate directive to break the law.
          • Ivan256, the original poster, used this one incident to imply that Electronics Boutique has a corporate directive to break the law.

            Many states disallow waiver of the implied warranty of fitness for a particular purpose. When a game shop sells, for example, a PC game with system requirements listed on the side of the box, it's implied that the software contained in that box is fit to run on the specified hardware. In the past EB would accept returns of games. If you bought a game that was buggy and crashed

        • Re:Um... (Score:4, Funny)

          by jayhawk88 ( 160512 ) <jayhawk88@gmail.com> on Monday April 18, 2005 @06:00PM (#12274862)
          He means that EB issue a refund for a game that's been opened, so he can't burn a copy of Halo 2 and take it back for a full refund. Bastards.
      • If a game came out for $49.99 in EB/Gamestop, it stays that way for 6 months.

        If a game came out for $49.99 in Bestbuy, there will be a single weekend where the game will be available for $34.99 or $39.99. After that, it will stay $49.99 for 6 months.

        If you don't mind paying the full price, it makes zero difference.

      • "That means they shoud stock enough games and drop the pre-order shit, and they should have a return policy that doesn't violate the laws of most states."

        You can't even spell. Seriously.

        Do you know how much it would cost, and how much room it would take, if GS/EB stocked EVERY shitty little game? Obviously you do not. What if a store only buys 20 of everything, no matter how big it is? Or like Madden? Madden costs a store 40.25$ to purchase from EA. EACH UNIT. So if they order a lot, because they've had
        • You can't even spell. Seriously.

          It was a typo. Get over it.

          Do you know how much it would cost, and how much room it would take, if GS/EB stocked EVERY shitty little game?

          Ever been to a book store? Wal-Mart sells books. Why aren't they putting Borders out of business?

          Here's the thing with the game publishing industry. They don't take returns. That's broken. Bookstores stock thousands of titles dating back *literally* hundreds of years. They can do it because publishers know that it really only costs a
          • The flaw with the bookstore anaolgy is that it doesn't cost a publisher $BIGNUM to just *produce* the book. Most writers make very modest salaries, and work in very small teams, if not solo. This isn't the case with modern video game titles, where litterally millions of dollars are put into just getting the game to the press.
            • Exactly, and this is where his analogy falls apart: one or two people write 90% of books; most games now are made by teams ranging from 50 to 100 people, all of which need salaries.

              And there's nothing "broken" about not taking game returns when anyone with a moderate amount of knowledge can buy a game and copy it and return it.
              • Exactly, and this is where his analogy falls apart: one or two people write 90% of books; most games now are made by teams ranging from 50 to 100 people, all of which need salaries.

                This is boneheaded logic. The same number of people will buy the game if there's tons of copies out there or just a few... Perhaps even more. There's no reason that you shouldn't make a few extra $2 copies of the physical game, since you'd still be charging $50 for them when you sell them. What you describe only explains why ga
              • And there's nothing "broken" about not taking game returns...

                Also, I was talking about the publisher taking returns from the store, not the store taking returns from the customer. If you've got to worry about the store pirating the game before returning it, you've got bigger problems...
            • Sorry, but that doesn't make sense.

              it doesn't cost a publisher $BIGNUM to just *produce* the book

              That doesn't matter at all.

              The fact of the matter is that the actual box in the store only costs a few dollars to make. There's no reason not to make tons of them and overstock, then pay the publisher/developer the high price when it sells. The only difference between that and the way it works now is that you would waste a couple of dollars for every extra copy you made that didn't sell, but even then you c
              • Unless I'm mistaken (this would not be unusual), the vendor doesn't pay just for the materials. They pay for the game, at a discounted rate. I speculate that bookstores do this too, however overstocking on an item that costs the vendor $3.00 verses something that costs the vendors say $20.00 is a big difference. The publisher *does* have to make up some of the liability or the production of the game in the distribution, unless the publisher does something like Valve did with steam, and asks the customer

    • Re:Um... (Score:2, Funny)

      by pnice ( 753704 )
      Don't forget about that wonderful greeting when you walk through the doors at Gamestop, "Did you bring in your trades?"

      They could call it "Loan Star Gamestop" or "Silver Dollar Gamestop" and it would actually fit in with the rest of the pawn shops here in Texas.

    • It's the employees (Score:5, Interesting)

      by M.C. Hampster ( 541262 ) <M...C...TheHampster@@@gmail...com> on Monday April 18, 2005 @04:23PM (#12273556) Journal

      Everytime I go into any of these little gaming specialty stores (GameStop, EB, GameCrazy), there's always the dude in there who has to bash my system. If I'm in there looking at Nintendo stuff, they'll tell me that Nintendo is dead. The other day I was in there just playing a demo and the two employees were talking loudly back and forth about how the Nintendo DS stood for "Nintendo Dead System". I kept thinking, "Wow, this really makes me want to buy my DS games here!".

      Perhaps they need to be screen out the fanboy's in their hiring process.

    • Re:Um... (Score:3, Insightful)

      by GamingEngineer ( 789145 )
      The cool thing about smaller game shops like EB and Gamestop is that depending on the management and the area they are located in, you can sometimes find a genuinely cool atmosphere in them. They're also great for those hard-to-find older or niche titles that warehouse stores don't carry, because they don't move off the shelves fast enough.

      My only qualms with EB are the pushes to preorder something or buy an additional item. If you're a gamer, you usually know what you want when you walk in the store. I

      • Re: (Score:3, Interesting)

        by account_deleted ( 4530225 )
        Comment removed based on user account deletion
        • ..."Pushing" these things is part of the job...
          ...We put the stickers on the case because it is part of SOP (Standard Operating Procedure)...

          Just because you are required to do these things to keep your job doesn't make them any less irritating to the customer. And it's this very practice that keeps me from spending my money in these stores.

      • Shop-worn. (Score:3, Interesting)

        by Inoshiro ( 71693 )
        "The other thing I have an issue with is how EB has a habit of opening a new copy of a game to be able to put it on the display shelf. If it's the last copy in stock, they want to sell it to you at the price of a new game, even though the goo from the 5 stickers that have been put on the case and the discs that have just been kept in a drawer somewhere can put the game in a condition that can be worse than many used games."

        Demand the 10% shop-worn discount. Managers have been told forever that they're not

    • Re:Um... (Score:3, Informative)

      by startled ( 144833 )
      While Walmart and Best Buy might not be all that great either, they are ALWAYS, WITHOUT EXCEPTION cheaper or equal in pricing to GameStop/EB for new games.

      I've also found EB usually has the games earlier than WalMar and BestBuy, and at least the ones near me are more likely to have some niche titles. They differentiate in different ways-- price is one area of competition, but not the only one.

    • Re:Um... (Score:3, Informative)

      by drinkypoo ( 153816 )
      I go into gamestop all the time. I truly do miss the Funcoland of old - they went to hell when they were bought out by gamestop, long before they changed the names of all the funcolands to gamestop. In particular they carried stuff for older systems, understanding that it brought people into the store on a regular basis. Gamestop doesn't get this and now I have nowhere to buy sega saturn games. Anyway gamestop is a great place to pick up used cables, controllers, and systems. If you don't like their game pr
    • There *IS* no market competition for new games. 49.99 or 49.96 at Wal*Mart so they can still claim to be the "Low price leader". Gamestop and EB? Oh look 49.99. At least at Best Buy or Wal*Mart you don't have the community college dropout that works there pestering you to pre-order every over hyped future bomb.
  • ..those EB Games pre-orders [ebgames.com].

    This could be pretty bad for EB Games employees, because, at least in my hometown, there's never a GameStop shop that doesn't have a competing EB Games shop nearby. In fact, GS and EB are only two blocks away from each other in my neighborhood. I guess this means a lot of annoying, "I totally know more about the PSP than you do" people are gonna be broke and living with their parents soon. If they weren't already, anyway.
    • You're right. I know of an EB/Game Stop pair where the Game Stop will be closed down because it just doesn't have customers. I'm sure that part of increasing the profits is by decreasing the employees and decreasing the amount of locations. It is inevitible that their combined sales will be less, but the profit margin should still increase.

      I guess this is their chance to remove "Boutique" from their name once and for all.
      • I'll do it one worse. Here, we have a mall that has a Gamestop and an EB in it, and across the street was a FuncoLand. Since Gamestop bought Funcoland, they have kept both stores running - there is literally an EB in between two Gamestops right now, all within walking distance (for the average gamer).
    • When GAME bought EB UK, they kept all of their Edinburgh [wikipedia.org] shops. There's now three Game-branded stores within a mile of each other, and presumably they all sell well else they'd have closed.

  • Sounds backwards (Score:5, Interesting)

    by MBraynard ( 653724 ) on Monday April 18, 2005 @03:15PM (#12272611) Journal
    EB has a higher market capitalization (1.354bil to 1.185bil), double the earnings per share, and from a consumer's point of view, a much better retail operation.

    So I wonder why it was Gamestop that took the initiative to issue a bunch of debt to buy EB?

    Given the co-operation of the EB people in the vote, it seems more like a merger than an acquasition.

    I really hope that EB doesn't get it's great service dilluted by GS's management.

    • I was thinking the same thing. This must be a joke, or a horribly misstated rumour/speculation.

      On the off-chance that it is true, I'm curious to know what the future then holds for EB in Canada. I like going to EB, if for nothing else than to troll the bargain bins for PC/N64/PS1/PS2/GB/GBC/GBA titles that are past their primes in the eyes of most; not to mention that we do not (AFAIK) have a single GameStop store in the Great White North.

      Anyone with inside information, please comment!
    • from a consumer's point of view, a much better retail operation.

      The last time I went to an EB (early Dec), I had to wait an half hour while the employees called every other manager in existence trying to find out if the warrenties on my used games would extend past Christmas. Eventually, the answer was yes, but that never would have happened at GS since their standard warrenty is 90 days (like most used game stores) as opposed to EB 14. Then, they insisted on putting a sticker on my used games, even t
      • Because the staff at the ones I've visited were the opposite of what you describe - friendly, knowledgeable, and cute chicks. Also because the website for EBgames is better and allows for user comments/ratings.
        • yes, but gamestop's web site allows you to enter your zip and they'll tell you if something is in stock at stores near you, which is very nice. Hopefully, they'll make one ubersite that has all the good stuff on it that both have.
        • It's not so much the staff, because they were friendly, and I can forgive one day of them not knowing everything. It's mostly just that a few things about them annoy me (stupid return policies, they seem to have higher prices and fewer sales) and I've never seen any plus about them that Gamestop didn't have. And considering every EB around here has a GS (or two, or three) around the corner, going to GS instead really isn't that big of a deal. Usually I prefer more competition and less consolidating, but
  • EB was the only place I could go to buy and sell used PC games. Gamestop doesn't do that, for whatever (presumably political) reasons. Now where am I to go? (Don't say ebay, it's not the same).
    • I've bought and sold used games and DVD at GameStop. I don't know what's wrong with the store you go to, but all the ones here (there are even three within a mile of one another) will.
    • "Gamestop doesn't do that, for whatever (presumably political) reasons."

      It's probably related to PCs often coming with CD Burners. I can't speak for Game Stop, but I can tell you that I worked at a game company not unlike Game Stop and that was one of the reasons they weren't big on PC games. That and we didnt want to deal with returns on used games because of configuration issues. It would have been real easy for somebody to buy the game, claim there's a configuration issue, and return it. Meanwhile,

    • The Law..... (Score:2, Interesting)

      by Panthar37 ( 685745 )
      Perhaps it has something to do with the EULA you so quickly pass over and never read. If you ever bothered to read it, you might have noticed that it mentions things like: I will only use this on one computer; I agree to be the sole owner/user of this software license; I will not resell this; etc. etc. etc. That is the reason that Gamestop does not purchase used games. It is not for any political reasons. I have never figured out how EB got away with it because they could have been sited for it at any time.

  • Consolidation != competition (Score:4, Insightful)

    by EnronHaliburton2004 ( 815366 ) * on Monday April 18, 2005 @03:18PM (#12272643) Homepage Journal
    Hopefully this will allow both chains to better compete with Wal-Mart and Best Buy for our gaming dollars."

    This may suprise you, but when chain stores consolidate, it rarely leads to more and good competition.

    Frequently, the reverse happens. The big chains simplify their inventory, reduce service, and only do the absolute minimum to compete with the likes of Wal Mart.

    Unfortunately, the consumers won't always shop elsewhere. There isn't always a convenient choice.

    • Re:Consolidation !always= competition (Score:5, Insightful)

      by cgenman ( 325138 ) on Monday April 18, 2005 @04:02PM (#12273244) Homepage
      In this case, though, the idea is valid. EB, Gamestop, and the rest of the specialty retailers are getting creamed by Walmart, Target, Kmart, Toys R Us, Best Buy, and the rest of the superstores. I can't specify numbers, but one could ignore the specialty retailers and still have quite healthy sales.

      In other words, EB / Gamestop / etc aren't competing with eachother, they're competing with the superstores. And they're losing. And they're in danger of disappearing.

      I've not been terribly happy with EB in the past 10 years, and their employees have been legendarily unhappy with corporate policies. I would much rather Funco have taken over EB, and not the reverse. But Funco was even more of a specialty store, catering to the used NES game crowd.

      In my not-so-humble opinion, EB / Gamespot need to work on getting more space, bigger aisles, and not cluttering their stores like they were libraries. Their stores are an intimidating wall of noise, noise which continues inside. Even if they're not going to go full Apple store sleek, they should at least go Suncoast. Simplifying their inventory might be a first step. I don't see how it would be possible for EB to reduce service any, short of slapping every customer that walks in the door. But reducing the noise and helping people to find good games (recommended section?) should be their first steps.

      • Simplifying the inventory is the opposite of what they should do. Lots of them are mall stores, and none of them have all that much space. Well, that's not true, there's a funcoland (or now, a gamestop) near santa clara someplace that's got a pretty big floor space, but in generally they're really small. Anyway, a game store without a selection might as well just close the door, because people will get tired of going there and not finding anything they're looking for. In fact, gamestop already cut off every
        • I believe that's the Funcoland on Wolfe avenue near Valco Mall that you're referring to.

          The smaller funcolands, like the one in Tustin next to the Target there, used to keep their older games in drawers. That way their selection stayed large, but the store stayed relatively free of clutter. If you wanted to go diving into the NES section you could, but the casual gamer could walk in and get a new system and a new block of games without getting overwhelmed.

          • Yes, the funcoland (now gamestop) in Capitola (behind the mall) used to keep their used games in drawers, too. Actually, gamestop still has games for which they have no covers in drawers, but they never have anything good, as store employees will often buy them and put them on ebay. In other words, exactly what I would do if I worked there.
  • I can't imagine buying a game from a local store unless I had a gift card or something.
    The last time I tried to buy a game (UT2K4) locally, every place I went either didn't have it, had only one version (dvd instead of cd was popular), for pennies off what it was when it was brand new, but marked on sale (when online retailers were selling it for ~30).
    They rip their customers off, I buy from someone who doesn't.

  • Shit (Score:1, Informative)

    by dar ( 15755 )
    Every Gamestop I've ever been in is dark, dirty, has unhelpful employees, and has a poor selection of games. Every EB I've been in is clean, has cheerful, helpful salespeople and has a good selection of games.

    I'm disappointed.
    • While I can't say I like either chain very much, there is one Gamestop down in Dearborn, Michigan. Supposedly it's the best selling store in the chain. Everytime I've ever gone in there the staff was friendly and went out of their way to help. They were also gamers and even the manger didn't mind just standing around and chatting about games if other customers weren't waiting.

      While this is a rare occurance, I do normally just buy where it's more convient. I used to goto the Gamestop by my college when

      • That is the only reason I'll shop at GameStop (if the EB I go to takes on the crap service trend I've seen with GameStop). And that is for niche titles that Best Buy won't carry, and that I can't get off of Amazon.
    • I've had the exact same experience. I've gone into the GameStop near me, and everyone there was extremely unhelpful, and pretty much they bordered on being jerks.

      The EB near me has a great staff. Everyone I've run into there is helpful, likes to chat about the new stuff coming out, etc...

      Depending on what happens, this could mark the start of me only shopping at Best Buy or Fry's. I have a hard time believing that GameStop is going to change its ways. They would have been better off buying EB and keep
    • EB has a nice style for their stores.

      I was already wary of buying there after they not only fucked up my preorder for the new Legacy of Kain game, but sold me a bunch of what turned out to be obviously used games as new.

      They lost my money for good when I read the story about the EB branch that wouldn't return stolen merchandise to the owner unless she paid them back for what they paid the thief.
    • That's generalizing - I've been into plenty of EBs that were trashed from top to bottom, nothing is alphabetized, their employees ignoring me, crap all over the ground, etc. The same could probably be said about a number or Gamestops, Best Buys, Blockbuster Videos, etc.
  • My town only has an EB, and not a GameStop. Maybe if they're turning it into a GameStop, they'll start selling $1.99 used strategy guides.

    Don't knock used games. If you know what you're looking for, you can make a killing selling the stuff. I picked up a used, great condition copy of Valkyrie Profile up at the GameStop in the next town for 39.99 (omg highway robbery!?), cleaned the sticker gunk off of it, and sold it on eBay for $91.00. ;D
  • I turn to the PSP launch as a case in point of how they suck at competing with BB and WalMart.

    Both of my local GS ring me the same old line of "Preorders only, not enough for everyone..."

    But I go to Best Buy that morning, and they have 500 consoles for a line of 20 people.

    Are you telling me that a retailer that has a 3:1 location advantage over another retailer can't stock a better ratio of consoles?

    They can grasp at straws of "not being as big" as the other guy, but they're in this industry, not outsid
    • This is because GameStop and EB like to create a false hype of "You'd better give us your money now so that you can get the console / game when it comes out!" Change the way the consumer views how they can purchse the product by making it seem that only game stores carry games and consoles, and they change the purchasing habits in their favor.

      On the plus side, it does guarantee you a copy of said console / game, if that's your thing.
    • There is the distinct possibility that the big boxes had so many units because the small stores sold more PSPs at launch since they are the place people go for preorders.

      Probably an infinite number of people can preorder up to a certain date and that store will likely be guaranteed every unit it needs unless the demand is absolutely ridiculous. After that happens, the big box that doesn't take preorders appears to have a massive stock because all the launch day people already have theirs.

      Where I live, th
    • By pre-ordering a game you not only guarantee yourself a copy of the game, but you also help support the industry in that you're saying "Hey, there's a demand for this game at this store, send us the units we need to fill this type of demand." No, EB and Gamestop are not big box retailers and no, they're not going to have as many copies as Best Buy or Target or Wal-Mart. But if you're a gamer, it would make sense that you'd want to support game specific retailers. On top of that, for the most part, you can
    • From what I read about the PSP launch, the specialty retailers sold out of PSP's reasonably often, while the Walmart / Target type places had plenty on hand.

      The PSP appealed to hard core gamers willing to burn money for a PSP. More casual gamer types who tend to pick up games at Walmart were not about to burn that much for the console.

      END COMMUNICATION

  • 1:1 Gamestop to Starbucks Ratio? (Score:5, Funny)

    by lunarscape ( 704562 ) on Monday April 18, 2005 @03:33PM (#12272841)
    My local mall already has TWO Gamestops and TWO EBs. Either some people are going to be out of jobs, or it's going to be hilarious seeing four Gamestops in one mall.
    • Really? Four specialty gaming stores in one mall?

      Oh wait... you must live near this place [mallofamerica.com]. I can't think of any conventional mall that would support such an overabundance.

    • I was going to mention that. My local mall has an EB and an "EBX". There are also four Gamestops within 15 minutes going in [i]one direction[/i]. I find it interesting that seem to be able to survive in out of the way shopping centers.

      I have one less than 3 minutes away. Always convenient if I am bored and have $$ lying around.

  • Comic Store Guy Syndrome (Score:1, Interesting)

    by Anonymous Coward
    I wish the guys that work at the local EB stay because GameStop employees are more annoying. GameStop employee never seem to shut up. No, I don't want hear about some Japanese import. That's great you finished the game - I don't care. Do I have to bring in my copy of Katamari Damacy so you don't make fun of me to the other employees like I am not here when I buy Madden 2005. Dammit stop yammering about some game to a soccer mom just trying to buy a game for her kid and get my damn game for me.

  • Won't change competition. (Score:3, Insightful)

    by hal2814 ( 725639 ) on Monday April 18, 2005 @04:06PM (#12273310)
    GameStop, EB, etc will always have a niche in the marketplace. There really do need to be exclusive video gaming stores in order to attract audiences that Wal-Mart, BB, etc do not wish to cater to. However, these niche stores will never be able to compete with Wal-Mart or Best Buy. The ones that have tried to compete on a customer-service-based approach have either gone under or changed their ways. Anybody remember when Software ETC let you return opened games for a refund within 30 days?

    Niche Stores also can't compete with the raw buying power of the chain stores. Things like returning a PSP is no problm at Wal-Mart. Just tell them you want your money back and they'll gladly give it to you. I've even returned open games to Wal-Mart after some arguing. GameStop and EB have to go along with things like dead pixel policies because they don't have the power to bully Sony like Wal-Mart does.

  • Debunking a few things (Score:5, Interesting)

    by Da Rabid Duckie ( 731742 ) on Monday April 18, 2005 @04:07PM (#12273324)
    I'd like to address some of the concerns people are having with this merger.

    1) Their customer service is going to change.
    - Not entirely true. I've worked at both EB and Gamestop, and EB has a strong and well-developed program in customer service and sales training while Gamestop has almost none (as of 2000). Once both companies sit down and analyze each other's practices it'd be logical to assume that EB's method of training will be incorporated. This is also backed by the fact that EB employees make more annually than Gamestop employees, and EB still turned a higher profit last year.

    As for the matter of the return policy, it changed because of copyright laws, not some corporate mandate.

    2) It's going to affect the used games market.
    - It should affect it at all, honestly. Rather, it should help stabilize it. There is a huge glut on the market as far as used product goes. Trade in prices are dictated by the amount the company has already vs the rate at which it's selling. That's why sports games trade in at such a low rate: once the current version comes out, previous versions get traded in at a huge rate and it devalues. Both companies rely on trades, so if trades stifled they would definitely addresss it, therefore it's safe to assume the prices would drop too.

    Btw, the $44.99 game likely had a trade in price of $25 to $35. This is how retailers like EB and Gamestop make profit. Average cost of a game is around $47. Companies like this can't keep their lights on just by selling hardware (which they sometimes lose money on) and new software. The profit margins from preowned is what keeps these companies afloat.

    Plus, with discount programs available, a preowned version of a new release being priced at $40 is actually a good deal sometimes (especially with BOGO sales).

    3) Gamestop is going to close stores in malls with multiple locations.
    - Again, this is not entirely true. Right now, an EB is open because it's getting business. If Gamestop closes a store because it is too close to another, it's a perfect opportunity for a competitor, say... Gamecrazy to move right in because they know that store gets traffic. As it stands, there are actually malls in America that have three EB stores in them, and they all get good traffic. I know there will be closings, but there will be many more openings.

    4) Prices will go up.
    - But they may go down. Prices are dictated by cost vs profits. Right now, the bulk quantity that EB and Gamestop purchase at gets a resulting cost of about $47 a game, as I mentioned earlier. Now, with some 3000+ stores in the US (more in Europe and Asia) Gamestop can now purchase games in a higher quantity, meaning a higher bulk discount and more profit from the $49.99 price point. If anything, it'd be an incentive for prices to stay where they are and more incentive to have sales on games.

    As an EB employee, I'm very optimistic about this merger. If nothing else, I at least made a quick 1k off of stock sales ;)
    • 1) Their customer service is going to change. - Not entirely true. I've worked at both EB and Gamestop, and EB has a strong and well-developed program in customer service and sales training while Gamestop has almost none (as of 2000). Once both companies sit down and analyze each other's practices it'd be logical to assume that EB's method of training will be incorporated. This is also backed by the fact that EB employees make more annually than Gamestop employees, and EB still turned a higher profit last y
    • Good points. In terms of customer service, Gamestop seems to have some great things in place as far as I've seen. No mattter how fantastic their customer service training is, I've received rotten service at my local EB...but that doesn't mean they're ALL like that. It comes down to the staff and management. Hopefully the two chains will be able to benefit from one another's experience.
    • "EB has a strong and well-developed program in customer service and sales training"

      "We won't give you the DS you pre-ordered unless you also buy our protection plan" counts as 'well-developed customer service program?'

      I'm sorry, but may they both burn in hell.
  • I like EB because of its pricematching with cheaper games (e.g., Fry's and Best Buy's ads usually on the first week of PC game releases), rebates once in a while, and being able to sell my very old PC games easily. I also don't do online shoppings and auctions.

  • I have a dream... (Score:2, Interesting)

    by Anonymous Coward
    In this dream, the "Niche Store," rather than trying to compete with faceless juggernauts like Walmart and Best Buy, tries to respect gamers and offer a service that those places don't: knowledgeable attendants who make honest recommendations, good deals on used carts, gamer-community-oriented events (LAN parties, multiplayer tourneys) and more.

    If I walked in to any EB or GS store in the country and said "Hey I'm looking for some backlog Treasure titles, what do you have?" and the employee said "Well we've

  • UPDATE! (Score:5, Funny)

    by alachua ( 559381 ) on Monday April 18, 2005 @04:58PM (#12274103)
    Gamestop showed up to pick up their EB today, but were informed that since they didn't pre-order, there were none in stock for them. They were able to special order it, but it may be a few weeks.

    -Cliff

  • One man can make a (bad) difference (Score:5, Informative)

    by superultra ( 670002 ) on Monday April 18, 2005 @05:45PM (#12274690) Homepage
    For all the people that complain about EB, when I worked at EB (3+ years as an assistant manager), there were good, solid, friendly people who visited our store more than once a week. They loved us, and we loved them. These people had been customers since opening day. Our relationships with these people reminded me very much of how it must have been like to run a smalltown hardware store at the turn of the century; we did them good by working deals in their favor when we could, and they always came to us when they bought games. Basically, the way business should work.

    That all changed when they brought Steve Morgan [yahoo.com] on board, maybe a year after I'd been working there. Up to that point, EB had been essentially a family business. The board had hired people from inside the company to run itself. But Morgan was from a department store. I knew someone who was inside the company enough to have talked to Morgan, and Morgan was quoted as saying that he'd never played a game in his life and never would. He didn't have children, and never wanted them.

    Joe Firestone, on the other hand, was CEO when Morgan was brought on. This guy exemplified leadership. He'd write inspirational, funny columns in our mailbox newsletter every week. Think of a fireside chat for video game employees. He knew what it was like to be one of us, and his emphasis was always the customer.

    The first thing Morgan did was set quotas on the stores for selling Game Doctors. It went downhill from there. When I left, they were changing the return policy to a Best Buy variant (you breath on it and you cannot refund it). He revamped the training that focused less on customer relationships and more on the bottom line.

    Firestone retired soon after they brought Morgan onboard. Jeff Griffiths replaced him, but it was clear even to the 5 hour a week part time employee that he was a puppet for Morgan. I haven't been in EB for two years now, but I have no doubt that Morgan had something to do with this buyout. Only people from outside the company, who had no vested interest in the company itself, no history, would have sold out EB.

    It's sad, actually. Many of the things people complain about when they're talking about EB stem from Morgan's policies. Sure, EB has always had arrogant assholes behind the counter or "unfair" trade-in values, but the underlying philosophy is now (obviously) completely different. The customers were first. Likewise, under Firestone, employees were treated fairly well and with respect. That started to change when Morgan came in.

    Morale of the story? Watch out for outsiders coming in, because they don't give a damn about anything except their own stock values - especially not the customer.

    I can't help but think that this decision hurts the people it really shouldn't hurt: the customers (who no have no choice or direct competition), and the hard working EB employees who will no doubt have to fend for their own jobs against longtime Gamestop employees. You think the clueless employees are bad now? Wait until EB/Gamestop starts to resemble the only competition they have left: Best Buy and Walmart. My guess is that the internal employee relations will reflect the same practices as Best Buy and Walmart too.

    Get out, video game store employees, while you can.

  • Honestly, I never really could tell the difference between EB and GameStop. I don't know what niche GS and EB fill! You can find all that new crap at BB or Walmart. But if there's a good stock of used stuff, especially old school, I'll return often.

    Like GameCrazy [gamecrazy.com] - I love that place. They have old school games! And the employees are familiar with them! (At least, at the one near me!)

    I recently grabbed my bro's Genesis and got a replacement SNES from eBay... there's just something really appealing ab

  • Alot of people bash pre-orders and complain about how aggessive EB / Gamestop are in pushing them.

    However, Pre-Orders are probably the safest way for a specialty shop to go. Ordinarily, they would only order as many copies as they think will sell. Pre-orders are guaranteed sales. They know that the copy will be bought. They dont have to waste shelf space on it.

    In general, if you want to guarantee a game at launch, pre-order it. If you want to buy within a month or so of launch, go to Walmart and get
  • Next, I bet, you're gonna tell me that Adobe bought Macromedia. Now THAT would be crazy!
  • I've always had a sore spot with gamestop from when they were babbages. Or maybe they bought babbages, who knows. All I know is at one point there opened up a computer store and it was amazing, it was the only one in the area.

    After about 5 or 6 years an EB finally opened its doors across the way. Everything in EB was 10 dollars cheaper. I guess it was the standard. Instantly all Babbages prices dropped 10 bucks and they had a price matching plan where if you saw something in EB cheaper you could walk over
  • Well, I work at the local Barnes and Noble (the only B&N in the world to have an EB Games on the same strip (since as you may not know, Barnes and Noble owns GameStop) and now well, it doesn't really matter that they don't have GameStop near them. Hmm, I wonder if I get discounts at EB Games now... even though I sort of did before, through connections and friends. This is very interesting though.

  • It seems the UK our GAME set of stores might have been an alternative target. The Game group actually bought the UK Electronic Boutique stores out a few years back as well.

    http://www.channelregister.co.uk/2005/04/19/game_g roup_takeover_talks_end/ [channelregister.co.uk]

    Game Group takeover talks end

    Game Group, the UK computer games retailer, yesterday said takeover talks with a mystery suitor had ended. Shares slumped by a quarter on the news. Shareholder speculation about a bid flushed out a statement by Game Group on 31

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