Good read on the retail videogame marketplace..

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TheGameguru's picture
Location: Cinemaction!

http://www.next-gen.biz/index.php?option=com_content&task=view&id=150&It...

Makes you now better understand the whole pre-order and bundle packaging mindset that goes on.

Aint nothing new about the world order..it's been playing since the day they put George Washington on a quarter

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LobsterMobster's picture
Location: On a picnic, going "La la la!"

You get to sell video games... AND rip off 10-year-olds? Dude, I'm there YESTERDAY.

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Podunk's picture
Location: The People's Republic of Goodge

Good read, thanks GG.

The one indie game store in my town is run by a bunch of smelly asshats, but at least I am somewhat sympathetic to them now.

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Fripper's picture
Location: Portland, OR

It's a good read. Seems like the Publishers, by holding on to the majority of the profits, are strangling their own distribution avenues. A bit short sighted if you ask me, but I'm not in the boardroom making those decisions, like which crap movie they want to adapt next.

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ArneTheTurtle's picture
Location: Pasadena, CA

The hard part is that there's really no way to easily draw the line between publisher, distributer, and vendor proffits. They each want the money from the game, and they all think they deserve it because they work hard.

The only way to draw lines for each of them is to have some sort of mediator force that is imposed upon all three, or perhaps a monopoly situation where the vendor is the distributor is the publisher...

Yeah.. that'd be great. ;p

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Mayfield's picture
Location: Running around in circles trying to get a nut

If Wal-Mart and BB are buying the game at $41, I will eat my shorts. No way Wal-Mart would allow that.

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TheGameguru's picture
Location: Cinemaction!

Mayfield wrote:
If Wal-Mart and BB are buying the game at $41, I will eat my shorts. No way Wal-Mart would allow that.

why not? Walmart deals on high volume not neccesarily high margin..thats never been their model.

edit

though I suppose at Walmart's volume they're getting probably closer to $39ish

Aint nothing new about the world order..it's been playing since the day they put George Washington on a quarter

Down in the Park with a friend called Five.

http://wumusicgroup.com/

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Larsson's picture
Location: The benighted hinterlands of Central Florida

My understanding, and my old company dealt with Sam's Club so it's a fairly informed opinion, is that Wal-Mart tells you what they will pay for your product. You accept their price or f*** off.

Simple as that. They are Wal-Mart and you are not.

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ArneTheTurtle's picture
Location: Pasadena, CA

Packaging and reproduction costs ~$2
So really, the person getting screwed is you =)
Oh wait, you're paying for the content right?
And how much of that money goes to the people who created that content?
*sigh* And people wonder why piracy is rampant.

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TheGameguru's picture
Location: Cinemaction!

Larsson wrote:
My understanding, and my old company dealt with Sam's Club so it's a fairly informed opinion, is that Wal-Mart tells you what they will pay for your product. You accept their price or f*** off.

Simple as that. They are Wal-Mart and you are not.

so...er..what they pay $1 then per title? They still have to purchase through a distributor.. I'm sure its pretty easy to discover which one they use for Videogame stuff... theres only a handful really.

Walmart EA blurb

http://www.forbes.com/technology/newswire/2004/02/27/rtr1279823.html

Aint nothing new about the world order..it's been playing since the day they put George Washington on a quarter

Down in the Park with a friend called Five.

http://wumusicgroup.com/

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Podunk's picture
Location: The People's Republic of Goodge

ArneTheTurtle wrote:
The only way to draw lines for each of them is to have some sort of mediator force that is imposed upon all three, or perhaps a monopoly situation where the vendor is the distributor is the publisher...

You mean like Steam? Seems to be working okay for them so far.

Xbox Live: CrankyBaby

baggachipz: Who cares about Japan, let them have their silly pointless dog games and countless re-hashes of anime-based dragon princess super lucky crapitty crap.

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fangblackbone's picture
Location: bay area

That's got to be slightly illegal. Distributors forcing retailers to pay over msrp for products?

Retail standards for msrp have always been based on 100% markup.

Talk about friggen greedy. When does the fed government corporate watchdog come in? This is absolutely disgusting!

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Grumpicus's picture
Location: Piedra Redonda, Tejas

fangblackbone wrote:
That's got to be slightly illegal. Distributors forcing retailers to pay over msrp for products?
Who's forcing what now? I didn't know the distributers were carrying guns now.

Edit: Good article on WalMart/EA, GG. Obviously the difference is that there are multiple sources of a can of soup or a loaf of bread (and the switching costs are low) but there's only one producer of Madden.